The news earlier was a disappointment from the PBoC, which was expected to cut its MLF rate today to 2.4%. It did not:

Via Reuters is a bit of a recap:

  • China's central bank boosted liquidity injections, added in 995 billion yuan vs. 779 billion yuan worth of MLF loans set to expire this month, a net 216 billion yuan fresh fund injection into the banking system
  • but surprised markets by leaving the interest rate unchanged at 2.5% when rolling over maturing medium-term policy loans
  • Many analysts, not all, had expected the central bank to cut the MLF rate to help shore up the weak economy


Yuan has chopped around and is not a lot net changed:

usdcnh pboc mlf unchanged 15 January 2024