Free Trial

MLF June Cut Likely - China Securities Daily

CHINA PRESS
MNI (BEIJING)

Authorities will likely cut the Medium Loan Facility (MLF) this month following the drop in the open market bidding rate by 10bp from 2% to 1.9% on Tuesday, according to analysts interviewed by China Securities Daily. Dong Qi, a macro analyst at Guotai Junan said the PBOC rate cuts would boost business confidence and lower risks from bad local government debt. Lu Ting, chief economist at Nomura China, said policymakers have historically lowered the MLF interest rate after reducing the open market rate. However, authorities should take wider support-based measures in addition to rate cuts in H2, Lu said.

MNI Beijing Bureau | lewis.porylo@marketnews.com
MNI Beijing Bureau | lewis.porylo@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.