PBOC to Pass Up Next Chance to Cut Borrowing Costs, Survey Shows
- Central bank could use MLF maturing on Saturday to lower rate
- PBOC signals focus on repairing rate transmission mechanism
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China’s central bank will skip a chance to cut borrowing costs in the coming days, holding off on clear-cut monetary easing for now as it lets a recent overhaul of the interest-rate system bed in.
That’s the view of 28 out of 34 analysts surveyed by Bloomberg when asked if they expect the People’s Bank of China to cut the interest rate charged on 1-year funds, after 149 billion yuan ($21 billion) of that lending matures on Saturday. Instead, the rate on the medium-term lending facility will be kept at 3.3% if fresh funds are supplied, according to the survey.