The People’s Bank of China’s (PBoC) surprising dovish turn last week is raising speculation over the severity of the nation’s economic slowdown, with traders anxiously waiting on the routine monthly liquidity operation that’s due just before the latest economic data.
SHANGHAI: An upcoming maturity of policy loans in China will offer clues on how far its central bank will go in loosening policy.
A rollover of all 400 billion yuan (US$61.8bil or RM259.58bil) of medium-term lending facilities (MLF) due today, after a surprise reserve requirement ratio cut last week, will signal a significant shift to easing, according to Xing Zhaopeng, senior China strategist at Australia & New Zealand Banking Group Ltd.
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