Key Points – September Report
Liquidity eased slightly in September, as the People’s Bank of China maintains an ‘ample’ supply of liquidity to foster the recovery, the latest MNI Liquidity Conditions Index shows.
The Liquidity Condition Index stood at 75.0 in August, down from the 84.4 recorded in August. The higher the index reading, the tighter liquidity appears to survey participants.
- The Economy Condition Index remains at elevated levels as the economy recovers, with all respondents seeing an improvement or unchanged outlook.
- The PBOC Policy Bias Index was higher, with more that 80% of those surveyed seeing little change in direction from the bank in coming months.
- The Guidance Clarity Index edged higher, with no respondents seeing the central bank as giving foggier indications of its intentions.
The MNI survey collected the opinions of traders at financial institutions operating in China's interbank market, the country's main platform for trading fixed income and currency instruments, and the main funding source for financial institutions. Interviews were conducted between Sep 14 and 25.
