PBoC holds key rate for tenth consecutive month
May data shows continued property downturn and improvement in retail sales and industrial production
The People’s Bank of China (PBoC) kept a key policy rate unchanged for the tenth consecutive month today (June 17).
The PBoC held the rate on 182 billion yuan ($25 billion) of one-year medium-term lending facility (MLF) loans to financial institutions at 2.5%, unchanged since August 2023. With 237 billion yuan of MLF loans set to expire this month, the operation withdrew a net 55 billion yuan from the banking system.
Analysts see the MLF as a guide to any changes to the loan prime rates (LPRs)
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