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The People’s Bank of China (PBC) maintained the medium-term lending facility (MLF) rate at 2.50 per cent on Monday, in line with expectations, as reported by Reuters.
The decision to keep the rate steady reflects the central bank’s focus on currency stability amid economic uncertainties and push back on market expectations of a US Federal Reserve interest rate cut.
The bank also withdrew 70 billion yuan from the banking system through bond instruments.
Analysts suggest that cooling inflation, slowing credit expansion, and declining exports in March indicate the need for further stimulus to boost the economy.
