▲ Aerial view of residential buildings under construction by Chinese real estate developer Vanke in Zhejiang province. Photo AFP
Reuters
La Jornada Newspaper
Saturday March 16, 2024, p. 14
Shanghai. China’s central bank left the policy rate unchanged and withdrew cash from a medium-term lending operation, as authorities continued to prioritize currency stability amid uncertainty over the timing of interest rate cuts. interest rates predicted by the US Federal Reserve.
A rate cut before the Federal Reserve or other major central banks do so would widen yield spreads, which could put more pressure on the local currency.
The People’s Bank of China said it was keeping the interest rate on 387 billion yuan ($53.8 billion) of one-year medium-term loans (MLF) to some financial institutions unchanged in 2.50 percent of the previous operation.
With 481 billion yuan of MLF loans maturing this month, the deal resulted in a net withdrawal of funds from the banking system of 94 billion yuan.
The central bank said Friday’s lending operation has fully met the demand of financial institutions to keep the banking system’s liquidity reasonably ample, according to an online statement.
2024-03-16 15:21:36
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