China Central Bank Keeps Key Policy Rates Unchanged

China's central bank on Monday kept its key policy rates unchanged in an unexpected hold.

The country's major commercial banks had lowered their deposit rates, a move seen as leaving room for more rate cuts.

The People's Bank of China injected 995 billion yuan ($138.93 billion) of liquidity into the banking system via the one-year medium-term lending facility at an interest rate of 2.5%, the same rate at its previous operation.

It also injected CNY89 billion through seven-day reverse repurchase agreements at a rate of 1.8%, also the same as its last operation.

The move to hold on key policy rates could disappoint the market, which has projected a rate cut this month after commercial banks cut their deposit rates last month to give more leeway for the central bank to guide down the benchmark lending rates.

China's banks use the PBOC's medium-term lending facility rates to price their loan prime rates.

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(END) Dow Jones Newswires

01-14-24 2109ET