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
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Yuan has chopped around and is not a lot net changed:
This article was written by Eamonn Sheridan at www.forexlive.com. Source