{"id":10237,"date":"2023-04-14T08:51:31","date_gmt":"2023-04-14T08:51:31","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/chinas-pboc-set-to\/"},"modified":"2023-04-14T08:54:26","modified_gmt":"2023-04-14T08:54:26","slug":"chinas-pboc-set-to","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/chinas-pboc-set-to\/","title":{"rendered":"China’s PBOC set to inject fresh funds via medium-term policy loans -survey"},"content":{"rendered":"

SHANGHAI (Reuters) – China’s central bank is expected to inject more liquidity when rolling over maturing medium-term policy loans for a fifth straight month on Monday, while keeping the interest rate unchanged, a Reuters survey of traders and analysts showed.<\/p>\n

The People’s Bank of China (PBOC) will continue to keep liquidity ample to support the economy and offset the impact from next week’s tax collection, traders and analysts said.<\/p>\n

Levies in the April tax season could drain as much as 1.7 trillion yuan ($248.5 billion) from the banking system, CITIC Securities estimates. <\/p>\n

“The central bank needs to step in with more fresh capital when the market is dealing with such volume,” a bond fund manager in Shanghai, who declined to be named, said. <\/p>\n

Although China ended its stringent zero-COVID policy in December, its recovery has been slow and March’s disinflationary data suggests consumption demand remains sluggish, raising expectations of more fiscal and monetary stimulus. <\/p>\n

In a poll of 29 market watchers this week, all predicted the PBOC would keep the interest rate on its one-year medium-term lending facility (MLF) unchanged at 2.75%.<\/p>\n

Among them, 23 of the respondents expected the central bank to inject an extra 100-300 billion yuan through MLF operations, while the remaining six forecast just a full rollover of the 150 billion yuan ($21.93 billion) worth of maturing debt.<\/p>\n

“The scale of maturing loans is not that much, making an outsized rollover likely, with the incremental estimated around 200-300 billion yuan,” a Beijing-based trader said.<\/p>\n

Analysts and traders also expect the central bank to inject fresh funds through open market operations next week, in addition to the outsized MLF rollover. <\/p>\n

The MLF rate serves as a guide to the loan prime rate (LPR)and markets mostly use the medium-term policy rate as a precursor to any changes to lending benchmarks. <\/p>\n

The monthly LPR fixing is due on April 20.<\/p>\n

($1 = 6.8404 Chinese yuan renminbi)<\/p>\n

\n

(Reporting by Li Gu and Tom Westbrook; Editing by Alexander Smith)<\/p>\n

\"tagreuters.com2023binary_LYNXMPEJ3D08S-VIEWIMAGE\"<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

SHANGHAI (Reuters) – China’s central bank is expected to inject more liquidity when rolling over maturing medium-term policy loans for a fifth straight month on Monday, while keeping the interest rate unchanged, a Reuters survey of traders and analysts showed. The People’s Bank of China (PBOC) will continue to keep liquidity ample to support the […]<\/p>\n","protected":false},"author":8,"featured_media":10238,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1216],"tags":[],"class_list":["post-10237","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-economy"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportEconomy\/tagreuters.com2023binary_LYNXMPEJ3D08S-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/10237","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=10237"}],"version-history":[{"count":1,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/10237\/revisions"}],"predecessor-version":[{"id":10239,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/10237\/revisions\/10239"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/10238"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=10237"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=10237"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=10237"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}