• The central bank kept the rate of its one-year medium-term loan unchanged at 2.85%
The central bank of China in a surprise move announced on Friday to keep the key interest rate unchanged amid a Covid-19 outbreak in the country.
The People’s Bank of China said it has to keep the rate of its one-year medium-term loan unchanged at 2.85%.
This comes as a shock to economists and analysts who expected a cut in the interest rate to support the country’s economy affected by the Covid-19 outbreak.
Also Read: China's Guangzhou imposes COVID-19 restrictions, Shanghai’s new cases soar to record level
“The People’s Bank (PBOC) forwent the opportunity to lower its policy rates today. That’s somewhat surprising given the sharp economic downturn and recent calls from China’s leadership for monetary support,” said Julian Evans-Pritchard, senior China economist at Capital Economics, according to CNBC.
“Most analysts, including us, had expected a cut,” he said.
The central also said it would not release more cash into the system and decided to roll over 150 billion yuan (or $23.5 billion) worth of medium-term lending facility loans.
Picture Credits: Getty Images