Chinese Yuan strength depend on rate policy next Monday

China’s central bank will maintain a key policy rate when rolling over medium-term loans due to worsening interest margins and a declining Chinese yuan.

97% of respondents anticipate the People’s Bank of China (PBOC) will maintain the interest rate on the one-year medium-term lending facility (MLF) loan at 2.50%.

However, 65% believe the central bank will fully roll over the maturing loan due this month.

China’s finance ministry has been selling 1 trillion yuan in long-term special treasury bonds since May to boost the economy’s sectors.


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