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China Keeps Medium-Term Lending Facility Rate At 2.75%
(RTTNews) - China's central bank maintained the rate on the one-year medium-term lending facility on Monday.
The People's Bank of China added CNY 170 billion via one-year MLF at an interest rate of 2.75 percent. The central bank also conducted seven-day reverse repo operations worth CNY 20 billion at a rate of 2.00 percent.
The central bank actions suggest that the PBoC is not particularly worried about the recovery of the Chinese economy, ING economist Iris Pang said. The first quarter GDP to be published on Tuesday will not be too soft, the economist noted.
The central bank move should provide some relief to the market which will now expect the GDP report for the first quarter to be in line with expectations, Pang added.
Economists expect China's economy to grow 4.0 percent on a yearly basis in the first quarter, faster than the 2.9 percent growth in the fourth quarter of 2022.
After a weaker 3.0 percent economic growth in 2022, the Chinese government set a moderate growth target of around 5.0 percent for this year.
The International Monetary Fund last week projected growth outlook for China at 5.2 percent this year and 4.5 percent in 2024.
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