Posted 1/15/2024, 5:22:00 AM
China Holds Interest Rates Steady Despite Economic Headwinds
- China's central bank held a key interest rate steady instead of cutting it as expected, disappointing investors
- Concerns about yuan volatility and uncertainty over when the Fed may cut rates limit China's policy options
- China faces economic headwinds like weak domestic demand, property crisis, sluggish jobs amid ambition growth target
- Policy moves over past year like mortgage rate cuts have failed to stimulate home buying as hoped
- PBOC may still cut rates once Fed changes course, giving more room vs monetary policy divergence now