China's Central Bank Holds Key Policy Rate Steady Amid Global Financial Uncertainty
China's central bank maintained its key policy rate on Sunday, keeping the one-year medium-term lending facility loans rate at 2.50% while rolling over maturing loans. This decision comes amid global financial uncertainty and the anticipation of the Federal Reserve's easing timeline. The steady MLF rate reflects China's aim to stabilize the yuan and manage the risk of currency depreciation and capital outflows. There is market speculation about potential future rate cuts to stimulate the world's second-largest economy.
Transcript
00:00 It's Benzinga and here's what's on the block.
00:02 China's central bank maintained its key policy rate on Sunday,
00:06 keeping the one-year medium-term lending facility loans rate at 2.50 percent,
00:10 while rolling over maturing loans. This decision comes amid global financial
00:14 uncertainty and the anticipation of the Federal Reserve's easing timeline.
00:17 The steady MLF rate reflects China's aim to stabilize the Yuan and manage the risk of currency
00:23 depreciation and capital outflows. There is marked speculation about potential future rate cuts to
00:28 stimulate the world's second-largest economy. The People's Bank of China has stated it will
00:32 remain flexible with its policy to support domestic demand and maintain price stability.
00:37 For all things money, visit Benzinga.com.
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