Key Points – October 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 traders expect the central bank to increase liquidity injections next month to cope with sizeable maturities, increased speculation of lower rates and concern tensions will resurface between China and the U.S despite a short term truce, MNI’s China Money Market Index indicated. 

• The MNI China Money Market Index was modestly higher in October as traders saw modestly looser conditions. 
• The MNI China Money Market Current Conditions Index was lower in October with the economy seen weakening. 
• The MNI China Economic Outlook Index fell sharply in October as sentiment soured.

The MNI survey collected the opinions of 49 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 October 13 to 24.