According to a survey conducted by Reuters, the Bank of China (CBOC) is anticipated to keep its key policy rate unchanged as it extends medium-term loans, with the decision influenced by uncertainties surrounding the Federal Reserve’s interest rate adjustments. Market analysts foresee a focus on stabilizing the yuan, despite calls for additional stimulus measures.
The majority of analysts predict no alteration in the interest rate for medium-term loans, although some suggest a slight reduction.
Amid expectations that the Federal Reserve may reduce rates if inflation decreases, there is a 65 percent probability of a rate cut in June. Such moves could potentially allow China to decrease borrowing costs and bolster economic expansion.
The actions of the People’s Bank of China (PBOC) may hinge on clarity regarding potential interest rate adjustments in the United States. Economists anticipate further monetary easing measures in China, including policy rate reductions and decreases in banks’ reserve requirement ratios.
