Steady rates in China, surprise move by the central bank

Steady rates in China surprise move by the central bank

(Finance) – With a surprise move, the Chinese central bank kept interest rates unchangeddespite the expectations of the markets that aimed at a cut in the cost of money, in response to the cooling of economic growth due to the flare-up of Covid-19 outbreaks.

Stops at 2.85%therefore, the one-year financing costs of medium-term loans (Mlf).

In the note accompanying the decision, the PBOC announced that he has placed liquidity on the markets with a one-year intervention of 150 billion yuan (23.5 billion dollars) at the interest rate fixed at 2.85%, on the same values ​​since January.

The Central Institute also carried out reverse repos (repo contracts) seven days in the amount of 10 billion yuan at the rate of 2.1%.

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