According to economists and analysts cited by MNI on Monday, the People’s Bank of China (PBOC) will work to maintain a healthy level of liquidity and control borrowing costs in the early months of 2023 as the economy struggles following a likely slowdown in fourth-quarter GDP amid a nationwide spike in Covid infections.
By reducing lending costs, the central bank will contribute to increasing consumption and helping struggling private real estate developers.
There is little prospect of another RRR reduction this month because the central bank already did so in December.
This month, the MLF injection may be increased by the PBOC. Due to the high in infection rates in major cities and the implementation of stimulus measures, growth may have peaked in December.
