SHANGHAI, Apr 15: Chinese money rates were little changed on Monday after China’s economic growth in the first quarter was slower than expected, with the central bank expected to keep monetary policy stable to support the economy.
China’s economic recovery unexpectedly stumbled in the first three months of 2013 as the annual rate of growth eased back to 7.7 percent from the 7.9 percent pace set in the final quarter of 2012, the National Bureau of Statistics data showed on Monday. That was weaker than a Reuters poll consensus forecast for an 8.0 percent expansion.
‘The economic situation is worse than my expectations, which could guide the central bank to keep monetary policy stable in the near term to support the economy,’ said a dealer at a Chinese bank in Shanghai.
Dealers said money conditions were unlikely change much for now, but a tax payment could cause a temporary rise in rates during the end of April.
Traders said markets can expect major cash outflows in April and May as companies make tax payments. In those two months last year, firms paid a combined 700 billion yuan ($113 billion) in taxes, according to a Reuters calculation based on official data.
The benchmark seven-day bond repurchase rate inched up 1 basis point to 2.96 percent by midday, while the overnight rate rose 3 bps to 2.05 percent and the 14-day rate fell to 3.03 percent.
(AGENCIES)
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