PBOC maintains one-year policy loan rate at 2.3% as Beijing balances growth stimulation and risk limitation.
China's central bank, PBOC, kept its one-year policy loan rate at 2.3%, despite bank loan slump & gov't bond buying, reflecting Beijing's cautious approach to balance growth stimulation with risk limitation. PBOC also conducted stress tests on financial institutions' bond investments to safeguard against market volatility and potential liquidity crises. Economists expect further PBOC easing by year-end, especially with the Federal Reserve's rate cut cycle.
August 26, 2024
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