PBoC holds key rate after third consecutive month of deflation

China’s central bank surprises analysts by restraining policy support amid weak economic data

The People’s Bank of China, Beijing
The People's Bank of China

The People’s Bank of China left a key medium-term policy rate unchanged today (January 15), while injecting fresh liquidity into the financial system. 

The move came after official data released on January 12 showed China’s consumer price index has remained in negative territory for three consecutive months.

The PBoC kept the rate on its one-year medium-term lending facility (MLF) loans to financial institutions at 2.5%, unchanged from last month. It announced it was advancing the financial sector

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