SHANGHAI:Â China's central bank partially rolled over maturing medium-term policy loans while maintaining the interest rate as expected on Thursday, as hawkish U.S. Federal Reserve tightening limited room to manoeuvre monetary policy to support the economy.
Another interest rate cut could further weaken the renminbi while global inflation risks are rising and higher import costs threaten domestic price stability. By contrast, rolling out more fiscal stimulus is a viable option as there is precedent of a higher budget deficit, and investor demand for Chinese debt remains firm.