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PBOC Rate Cuts May Boost China Outlook

PBOC Rate Cuts May Boost China Outlook
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China unlikely to cut major policy rate amid inflation, yuan pressure as risk versus reward doesn t seem attractive

People’s Bank of China (PBOC) is set to leave the rate on its one-year policy loans – the medium-term lending facility (MLF) – steady at 2.5 per cent on the first working day after the Lunar New Year holiday ends.

Asian market stutters as China doles out meagre rate cut

Disappointment at the meagre move saw Chinese blue chips ease 0.3%, while the Australian dollar took a dip as a liquid proxy for China risk. Investors have been hoping for a repeat of the massive fiscal spending that has juiced the economy in the past, but Beijing seems reluctant to add to its borrowing tasks.

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