China's Central Bank Increases Liquidity Injection with Unchanged Interest Rates

China's central bank, the People's Bank of China (PBOC), increased liquidity injection through medium-term policy loans but kept the interest rate unchanged, in line with market expectations. The PBOC aims to maintain ample liquidity in the banking system to counteract short-term factors, while also providing mid- and long-term base money. The move comes as the recovery of the world's second-largest economy remains uneven and requires further stimulus. Market participants believe that the weakening Chinese yuan has limited the central bank's ability to aggressively lower interest rates.