The news earlier was a disappointment from the PBoC, which was expected to cut its MLF rate today to 2.4%. It did not:
Via Reuters is a bit of a recap:
- China's central bank boosted liquidity injections, added in 995 billion yuan vs. 779 billion yuan worth of MLF loans set to expire this month, a net 216 billion yuan fresh fund injection into the banking system
- but surprised markets by leaving the interest rate unchanged at 2.5% when rolling over maturing medium-term policy loans
- Many analysts, not all, had expected the central bank to cut the MLF rate to help shore up the weak economy
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Yuan has chopped around and is not a lot net changed:
