China c.bank set to leave policy rate unchanged, drain some liquidity


People walk past the PBOC building in Beijing. —Bloomberg

CHINA"s central bank is set to leave a key policy rate unchanged when rolling over maturing medium-term loans on Monday, a Reuters survey showed, while a vast majority of respondents also expect some liquidity to be drained via the bond instrument.

Market watchers widely believe Beijing will continue to prioritise the stability of the yuan, at a time the Chinese currency is facing renewed depreciation pressure. It weakened to a five-month low this week, dragged down by a resurgent U.S. dollar.

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China , PBOC , yuan , Federal Reserve , interest rate

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