PBOC Keeps Prime Lending Rates Steady

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The benchmark lending rates of Chinese banks have not changed, suggesting that more monetary easing is anticipated in the first part of 2024. After reducing it in August, the People’s Bank of China (PBOC) maintained its medium-term loan facility last week. The senior authorities of China have indicated that they will continue their supportive monetary policy into the upcoming year. This could result in modest reductions to the reserve requirement ratio and PBOC policy interest rates in the early months of 2024.

Economic data for November revealed that persistent property problems and poor demand are still putting pressure on China’s economic growth. In an effort to ease worries about a cash shortage, central bank officials last week injected a record 800 billion yuan ($112 billion) in one-year loans into the economy. Analysts now anticipate that the PBOC will cut the Reserve Requirement Ratio (RRR) in the first quarter of 2024.

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Our team at Eastern Finance is made up of young and knowledgeable professionals who are here to provide you with business news from an eastern perspective.

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