Key Points – December 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.
Chinese interbank money market traders expect only limited further central bank cuts to the policy rate and reserve requirements in 2026 as policy focus moves to addressing economic structural issues, while ample liquidity will be maintained to ensure market stability, MNI’s China Money Market Index indicated on Wednesday.
- The MNI China Money Market Index inched lower in December as traders foresaw conditions little changed.
- The MNI China Money Market Current Conditions Index edged higher in December with PBOC seen adding liquidity.
- The MNI China Economic Outlook Index fell again in December as sentiment remains pressured.
The MNI survey collected the opinions of 50 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 December 1 to 12.
