As was widely expected, the People’s Bank of China (PBOC) left its 1-year medium-term lending facility (MLF) rate steady at 2.0%, BBH's FX analysts report.

China’s economy is still struggling to escape a deflationary spiral

"More easing is in the pipeline as China’s economy is still struggling to escape a deflationary spiral. However, the growth outlook will remain unimpressive as long as policymakers fail to address the root cause of weak consumption spending activity: low household income levels, high precautionary savings, and high levels of household debt."

"China’s annual 'Two Sessions' National People's Congress meeting begins March 5. While detailed policy announcements are not expected, the sessions provide a valuable insight into the government’s fiscal and growth objectives."