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China's central bank expected to keep policy rate steady amid slowing growth, currency depreciation

The headquarters of the People's Bank of China, the central bank, is pictured in Beijing, China, February 3, 2020. REUTERS/Jason Lee/File Photo

Overview

  • China's central bank is predicted to keep its medium-term lending rate unchanged but boost liquidity.
  • The bank has already lowered the rate twice since June to support the economy.
  • New bank lending in China jumped fourfold in August, exceeding forecasts.
  • The yuan has fallen over 5% against the dollar this year, prompting efforts to slow its decline.
  • The bank is seen seeking to bolster growth while not overly weakening the currency.