China’s central bank is expected to guide interest rates lower in the coming months as it seeks to maintain ample liquidity, according to economists cited by the China Securities Journal.
Sun Binbin, chief economist at China Securities, said liquidity conditions in October will likely mirror those of September, but added that the resumption of treasury bond trading by the central bank and seasonal trends should pull money-market rates back to July–August levels, with reduced volatility.
At a recent briefing, PBOC Governor Pan Gongsheng reiterated that the central bank will deploy a range of policy tools as needed to keep liquidity sufficient, lower overall financing costs, and support consumption and investment. He said these measures are aimed at consolidating the economic recovery, ensuring financial stability, and keeping the yuan broadly stable.
The PBOC’s Monetary Policy Committee also stressed at its third-quarter meeting that liquidity should remain ample, with financial institutions encouraged to expand credit supply in line with growth and inflation targets.
