Key Points – Oct 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.
The People's Bank of China’s move flagging the new benchmark status of the overnight rate is producing an effect akin to an interest rate cut, with ample liquidity smoothing out funding pressures stemming from recent stock market volatility, MNI’s October China Money Market Index indicated on Wednesday.
The MNI China Money Market Index picked up in October, but held below the 50 mark
The MNI China Money Market Current Conditions Index inched higher, but again remained below 50.
The MNI China Economic Outlook Index edged higher, 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 Oct 14 to 24.
