Posted 10/16/2023, 2:18:00 AM
China's Central Bank Injects Liquidity to Aid Economy While Balancing Currency Stability
- China's central bank provides liquidity support to banking system
- Rolls over medium-term policy loans, keeps interest rate unchanged
- Walking a tightrope between supporting economy and stabilizing yuan
- Conducts 789 billion yuan MLF operations to maintain liquidity
- Biggest net injection of liquidity in nearly three years
- Holds one-year loan rate at 2.5% amid concerns over yuan declines
- Aims to ease stress in market, support economy
- Further monetary easing could pressure yuan
- Analysts expect more policy easing to support growth