Key Points – Sept 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 liquidity is expected to remain ample thanks to increased injections by the People's Bank of China and persistently weak credit demand, with expectations for a rate cut this year diminishing further but the Federal Reserve's hawkish shift unlikely to alter the PBOC's accommodative stance, MNI’s September China Money Market Index showed.
- The MNI China Money Market Index slipped in September, holding below the 50 mark
- The MNI China Money Market Current Conditions Index inched higher, but 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 53 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 Sept 14 to 24.
