People's Bank of China is expected to inject funds via a medium-term lending facility
People's Bank of China is expected to inject funds via a medium-term lending facility operation as yet another policy maneuver that is aimed at supporting the economy that is slowly recovering from COVID-19 shocks, at a time that other major economies are raising interest rates aggressively.
The article in the China Securities journal states that 1 trillion yuan (circa US$139 billion) is maturing and that the injection is expected to match the maturing amount according to a majority of analysts surveyed.
It's not all of them expecting this though.
Note also that one- and five-year loan prime rates (LPR) will be set on Monday, the 231st.
The rate set for the MLF will provide a clue of any change coming for the LPR rates. Currently at
3.65% for the one year.
4.30% for the five year.
Meanwhile, USD/CNH was trading heavily early Monday, falling to 7.0690 from Friday's close of 7.0892 as burgeoning hopes for China easing COVID measures weighs.
There is potential for USD/CNH to test 7.0000 as the following chart illustrates:
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
