(Finance) – The Chinese central bank he kept interest rates stable reference point for loans to businesses and households, surprising the market that instead was expecting a monetary easing, to reactivate the growth that was held back by the crisis in Ukraine and the re-emergence of infections linked to Covid-19.
The People’s Bank of China (PBOC) therefore maintained the one-year reference rate at 3.7% and the rate at five years to 4.6%, confirming the current level of rates, despite the majority of 28 analysts consulted by Reuters pointed to a reduction. However, it is not excluded that a there may be a cut at the next meeting in May, or even in June, once the impact of the new lockdowns to contain the pandemic becomes clearer.
The Yuan therefore depreciated again with respect to the greenback and touched a low since last October at a level of 6.4115 against the dollar.
The expectation of a monetary easing in China had consolidated after the GDP data released on Monday, which showed a slowdown in growth to 4.8% in the first quarter of the year, an increase in production limited to 5% and a decrease. in retail sales by 3.5% due to Covid.