SHANGHAI : China's central bank is widely expected to keep unchanged the borrowing costs on its medium-term policy loans for the sixth consecutive month on Friday, a Reuters survey showed.
Among them, 22 expected the People's Bank of China to fully renew 100 billion yuan worth of maturing policy loans due on Friday. But the remaining seven participants predicted a partial rollover after the central bank unexpectedly reduced the daily reverse repo volume this month. "As such, we do not believe that the PBOC will cut policy rates any further, unless there are more prolonged lockdowns," Pang said, expecting the one-year MLF rate to be unchanged for the remainder of the year.
"This statement signalled PBOC's focus on maintaining price stability, and is consistent with our view of no further RRR nor interest rate cuts in the second half of this year," analysts at Goldman Sachs said in a note.