MNI Indicators: MNI China Money Market Index™ – February Conditions Ease

Key Points – February 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 money market traders reported tight conditions in February as the People’s Bank of China refrained from filling the liquidity gap after the Chinese New Year holiday, but said they expect policy easing including a reduction in banks’ reserve requirement ratio after top policy meetings in March, the latest MNI Money Market Index showed.

• The MNI China Money Market Index suggested slightly tighter liquidity in February after the Lunar New Year. 
• The MNI China Money Market Current Conditions Index rose in February 
• The MNI China Economic Outlook Index rose further in February. 

The MNI survey collected the opinions of 43 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 from Jan 6 – Jan 17