Key Points – April Report
Introducing the updated MNI China Money Market Index (MMI), formerly the MNI China Liquidity Index, which has been adapted to reflect the PBOC's monetary policy.
Ample interbank liquidity will keep Chinese money market rates low over the next month, reducing the need for central bank interest rate cuts, and further push down long-end government bond yields, with traders seeing limited impact on the economy from the Middle East energy shock, MNI’s China Money Market Index indicated on Wednesday.
The MNI China Money Market Index fell in March, slipping from the 50 mark.
The MNI China Money Market Current Conditions Index edged modestly lower, still sitting close to recent lows lows.
The MNI China Economic Outlook Index edged lower, although concerns over the impact Iran conflict on the economy remain muted.
The MNI survey collected the opinions of 51 traders with 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 April 12 to 24.
