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China Leaves Key Rate Steady as Yuan Limits Maneuvering Room.
- Source :
- Bloomberg.com; 2/17/2024, p1-1, 1p
- Publication Year :
- 2024
-
Abstract
- China's central bank, the People's Bank of China, has decided to keep its key interest rate steady at 2.5% in an effort to stabilize the yuan and assess the impact of recent support measures for the economy and markets. The bank made a small cash injection of 1 billion yuan ($139 million) into the banking system, the smallest infusion since August. China's economy is facing challenges such as a property crisis, weak confidence, and deflation pressures, leading to concerns among investors. The central bank's cautious approach to easing monetary policy reflects a mismatch with market expectations for more aggressive stimulus. The stability of the yuan is crucial for investor confidence in Chinese stocks and bonds, which have been experiencing outflows. Chinese authorities are also waiting to see the effects of previous measures, such as a cut in the reserve requirement ratio for banks. [Extracted from the article]
Details
- Language :
- English
- Database :
- Complementary Index
- Journal :
- Bloomberg.com
- Publication Type :
- Periodical
- Accession number :
- 175551985