China Holds Interest Rate Steady Amid Economic Strategy Adjustments
December 25, 2024 at 9:11 AM GMT+0

China Holds Interest Rate Steady Amid Economic Strategy Adjustments

In a strategic move to manage potential trade turbulence with the United States, China has opted to keep its key interest rate unchanged. As detailed in a report on Yahoo Finance, the People's Bank of China (PBOC) maintained the one-year medium-term lending facility rate at 2%. This decision aligns with predictions from nine out of ten economists surveyed by Bloomberg, who did not anticipate a change in the rate.

The PBOC's latest financial operation involved the provision of 300 billion yuan ($41 billion) in policy loans via the medium-term lending facility (MLF), juxtaposed against maturities totaling 1.45 trillion yuan in December. This marks the fifth consecutive month of net cash withdrawal using this tool. Notably, these activities indicate the PBOC's strategic intention to reduce reliance on MLF and focus on shorter-term interest rates as policy benchmarks.

Despite the absence of explicit stimulus measures, amid the backdrop of impending U.S. tariffs threatened by President-elect Donald Trump, China's leadership has indicated a shift towards a more 'moderately loose' monetary policy after nearly fourteen years. Additionally, policymakers' commitment to deploying 'more proactive' fiscal tools is aimed at invigorating the national economy, although these tools have not yet been employed.

Data from IndexBox Platform shows that China's sovereign bond yields have plummeted to record lows, driven by growing market speculation over significant interest-rate cuts expected in the upcoming year. To mitigate shortfalls in liquidity, last month the central bank reportedly infused a net 1 trillion yuan through outright reverse repurchase agreements and government bond purchases, demonstrating a keen balancing act to sustain economic momentum.

Source: IndexBox Market Intelligence Platform

  1. 1. INTRODUCTION

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    1. REPORT DESCRIPTION
    2. RESEARCH METHODOLOGY AND AI PLATFORM
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    4. GLOSSARY AND SPECIFIC TERMS
  2. 2. EXECUTIVE SUMMARY

    A Quick Overview of Market Performance

    1. KEY FINDINGS
    2. MARKET TRENDS This Chapter is Available Only for the Professional Edition PRO
  3. 3. MARKET OVERVIEW

    Understanding the Current State of The Market and Its Prospects

    1. MARKET SIZE
    2. CONSUMPTION BY COUNTRY
    3. MARKET FORECAST TO 2030
  4. 4. MOST PROMISING PRODUCT

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    1. TOP PRODUCTS TO DIVERSIFY YOUR BUSINESS
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  5. 5. MOST PROMISING SUPPLYING COUNTRIES

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    1. TOP COUNTRIES TO SOURCE YOUR PRODUCT
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    1. TOP OVERSEAS MARKETS FOR EXPORTING YOUR PRODUCT
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  7. 7. GLOBAL PRODUCTION

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    1. PRODUCTION VOLUME AND VALUE
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    1. IMPORTS FROM 2012–2024
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  9. 9. GLOBAL EXPORTS

    The Largest Exporters on The Market and How They Succeed

    1. EXPORTS FROM 2012–2024
    2. EXPORTS BY COUNTRY
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  10. 10. PROFILES OF MAJOR PRODUCERS

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  11. 11. COUNTRY PROFILES

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    • United States
    • China
    • Japan
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    • France
    • Brazil
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    • Russian Federation
    • India
    • Canada
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    • Republic of Korea
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    • Pakistan
    • Greece
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    • Algeria
    • Czech Republic
    • Qatar
    • Peru
    • Romania
    • Vietnam
  12. LIST OF TABLES

    1. Key Findings In 2024
    2. Market Volume, In Physical Terms, 2012–2024
    3. Market Value, 2012–2024
    4. Per Capita Consumption, By Country, 2018–2024
    5. Production, In Physical Terms, By Country, 2012–2024
    6. Imports, In Physical Terms, By Country, 2012–2024
    7. Imports, In Value Terms, By Country, 2012–2024
    8. Import Prices, By Country Of Destination, 2012–2024
    9. Exports, In Physical Terms, By Country, 2012–2024
    10. Exports, In Value Terms, By Country, 2012–2024
    11. Export Prices, By Country Of Origin, 2012–2024
  13. LIST OF FIGURES

    1. Market Volume, In Physical Terms, 2012–2024
    2. Market Value, 2012–2024
    3. Consumption, By Country, 2024
    4. Market Volume Forecast to 2030
    5. Market Value Forecast to 2030
    6. Products: Market Size And Growth, By Type
    7. Products: Average Per Capita Consumption, By Type
    8. Products: Exports And Growth, By Type
    9. Products: Export Prices And Growth, By Type
    10. Production Volume And Growth
    11. Exports And Growth
    12. Export Prices And Growth
    13. Market Size And Growth
    14. Per Capita Consumption
    15. Imports And Growth
    16. Import Prices
    17. Production, In Physical Terms, 2012–2024
    18. Production, In Value Terms, 2012–2024
    19. Production, By Country, 2024
    20. Production, In Physical Terms, By Country, 2012–2024
    21. Imports, In Physical Terms, 2012–2024
    22. Imports, In Value Terms, 2012–2024
    23. Imports, In Physical Terms, By Country, 2024
    24. Imports, In Physical Terms, By Country, 2012–2024
    25. Imports, In Value Terms, By Country, 2012–2024
    26. Import Prices, By Country, 2012–2024
    27. Exports, In Physical Terms, 2012–2024
    28. Exports, In Value Terms, 2012–2024
    29. Exports, In Physical Terms, By Country, 2024
    30. Exports, In Physical Terms, By Country, 2012–2024
    31. Exports, In Value Terms, By Country, 2012–2024
    32. Export Prices, 2012–2024

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