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2025 rate cutsChinaPBOCUS trade tensionseconomy

China's Central Bank Keeps Steady While Traders Anticipate Rate Cuts in 2025

In a move that signals cautious optimism amidst potential US trade tensions, China's People's Bank decided to keep its key interest rate unchanged while executing a significant liquidity action. By holding the one-year medium-term lending facility (MLF) rate at 2% and withdrawing a staggering 1.15 trillion yuan from the financial system—the largest since 2014—the PBOC appears to be strategically preserving its policy levers.

Dec 26
China's Central Bank Keeps Steady While Traders Anticipate Rate Cuts in 2025

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2025 rate cutsChinaPBOCUS trade tensionseconomyfinancial systeminterest ratesliquiditymonetary policyyuan

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