Beware of fraudulent websites impersonating us. Verify website URLs and legal entity details. Avoid unsolicited emails and report suspicious activity.
Your safety is paramount. Thank you for your attention and cooperation. See more details
China’s central bank, the People’s Bank of China (PBOC), decided to keep its key policy rates unchanged, as expected, following a series of rate cuts last month. In its latest monetary policy operation, the PBOC injected 300 billion yuan (approximately $42 billion) into the financial system through its medium-term lending facility (MLF), maintaining the interest rate at 2.3%. This move is aimed at ensuring liquidity while stabilizing the financial markets.
Earlier this month, the PBOC made a significant adjustment by moving the date for injecting one-year liquidity to commercial lenders in August from the 15th to the 26th. The central bank has not specified whether this shift will be permanent, but it is part of a broader strategy to give short-term rates a more prominent role in guiding market expectations. This indicates a strategic shift in the PBOC’s approach, reducing reliance on the MLF and elevating the importance of the seven-day reverse repos rate.
In addition to the MLF operation, the PBOC also injected CNY471 billion through seven-day reverse repos at an unchanged interest rate of 1.7%. This additional injection underscores the central bank’s focus on stabilizing short-term rates while ensuring sufficient liquidity in the banking system. The PBOC’s decision to keep the rates unchanged suggests a cautious approach to monetary policy amidst the current economic environment.
These moves are part of the PBOC’s ongoing efforts to fine-tune its monetary policy tools, balancing the need for economic support with the goal of maintaining financial stability. The shift towards more flexible, short-term measures reflects the central bank’s adaptive strategy in response to evolving domestic and global economic conditions.
As the PBOC continues to navigate the complexities of China’s economic landscape, its recent actions indicate a careful calibration of policy aimed at sustaining growth while managing risks in the financial system. The focus on short-term market guidance may provide more agility in responding to future economic challenges.
This website is published by Fortune Prime
The information provided on this website is intended for general informational purposes only and does not constitute financial or investment advice. The content on this website is not tailored to the specific circumstances or investment objectives of any individual or entity.
Please be aware that the products mentioned on this website, including Over the Counter (OTC) foreign exchange contract and derivative products carries a high level of risk which may not be suitable for everyone, that may result in the loss of your investment. We strongly recommend seeking professional advice or conducting thorough research before making any investment decisions or engaging in derivative product trading.
This website may provide links to external websites or third-party content for your convenience. However, we do not endorse or take responsibility for the accuracy, completeness, or reliability of any information, products, or services offered by these external sources.
By using this website, you acknowledge that you have read, understood, and agreed to the terms of this disclaimer. If you have any questions or concerns, please contact us for further clarification.
Please note that this disclaimer applies specifically to non-Australian products. If you are located in Australia, different regulations and disclosures may apply.
The availability, terms, and conditions of these products may vary depending on your jurisdiction.
The services listed on this website are not available to residents of the USA, Japan, Ukraine, Indonesia, New Zealand, Australia, and North Korea.
Fortune Prime Limited is authorised and regulated by the Vanuatu Financial Services Commission (VFSC), number 700507.
Registered address: 1276 Govant Building, Kumul Highway, Port Vila, Vanuatu.
Business (physical) address: Suite 5, 18-20 Prospect St, Box Hill VIC 3128 Australia.
Financial Services Guide | Privacy Policy | Product Disclosure Statement | Terms & Conditions
This website is published by Fortune Prime Limited.
Investing in Over the Counter (OTC) foreign exchange and derivative products carries a high level of risk and is not suitable for all investors. You do not own, or have, any interest in the underlying assets. We encourage you to consider your investment objectives, your risk tolerance, and trading experience and seek independent financial or tax advisor advice or conducting thorough research before trading. You could lose substantially more than your initial investment so do not invest money you cannot afford to lose. We only provide general advice which does not consider your financial objectives or personal circumstances. The content of this website should not be interpreted as personal advice.
Customers registered on this website will open under Fortune Prime Limited, which is incorporated in Vanuatu with a financial license number 700507 and is regulated by the Vanuatu Financial Services Commission (VFSC).
The Fortune Prime Group of companies is authorized and regulated in various jurisdictions.
Fortune Prime Limited trading as Fortune Prime Global, is authorised and regulated by the Vanuatu Financial Services Commission (VFSC), number 700507 and is Registered address: 1276, Govant Building, Kumul Highway, Port Vila, Vanuatu.
Financial Services Guide | Privacy Policy | Product Disclosure Statement | Terms & Conditions
Please add the WeChat FPG_01, or scan the QR code.