Key Points – June 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 expectations for rate cuts hit a fresh low in June as the People's Bank of China scaled back its injections to tighten excessively loose liquidity, MNI’s China Money Market Index indicated. The sub-index covering current liquidity conditions jumped to 65.4 from 20.6 (the higher it reads, the tighter liquidity), the highest reading since February 2025.
The MNI China Money Market Index slipped in June but remained just above the 50 mark
The MNI China Money Market Current Conditions Index jumped sharply as conditions tightened
The MNI China Economic Outlook Index was lower, with the index remaining in the range of recent months. The MNI survey collected the opinions of 52 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 June 8 to 18.
