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China’s yuan holds steady on unchanged lending rates; offshore yuan liquidity tight
China’s yuan held steady against the US dollar as the central bank skipped interest rate cuts in its market operations on Monday, while offshore yuan funding costs surged to their highest in nearly four months. The People’s Bank of China (PBOC) kept benchmark lending rates unchanged at its monthly fixing on Monday, matching market expectations, with authorities seen as having limited scope for monetary easing amid downward pressure on the yuan. The decision came after the central bank surprised markets last week by maintaining its medium-term lending facility rate. Meanwhile, offshore yuan liquidity has shown ... (full story)