Key Points – January 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 comfortable liquidity conditions next month as the central bank increases its reverse repo operations ahead of the Chinese New Year holiday while holding the policy rate steady, according to MNI’s China Money Market Index published Wednesday.
- The MNI China Money Market Index fell in January as traders foresaw improved liquidity ahead of the Lunar New Year.
- The MNI China Money Market Current Conditions Index were little changed in January with PBOC seen adding liquidity ahead of the holidays.
- The MNI China Economic Outlook Index rose on upbeat expectations ahead of the New Year celebrations.
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 January 12 to 23.
