PBOC to cut borrowing costs, support liquidity in Q1 – MNI

Citing economists and analysts, MNI reported on Monday, the People's Bank of China (PBOC) will seek to maintain ample liquidity and guide down borrowing costs early in 2023, as the economy continues to struggle after a likely slowdown in fourth quarter GDP amid a nationwide surge in Covid infections.

Additional takeaways

The central bank will play a role in boosting consumption and assisting ailing private property developers by lowering credit costs.

 Given the central bank cut the RRR in December, there is little chance of another one this month. The PBOC may also increase the MLF injection this month.

Growth may have bottomed in December as infection numbers peaked in major cities and stimulus measures were deployed.

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