China central bank holds medium-term rate but adds liquidity

SHANGHAI, Jan 15 — China’s central bank left the medium-term policy rate unchanged today, defying market expectations for a cut as a weaker currency limited the scope of monetary easing in the near term to boost the economy. A slew of recent indicators continued to reflect the country’s uneven economic recovery, with a pick-up in exports in December but weak credit growth and persistent deflationary pressure calling for more stimulus measures. However, a narrowing interest rate margin at commercial banks and a weakening Chinese yuan have limited the room for the People’s Bank of China (PBOC) to maneuver, and rate cuts may be postponed until later this year, some market watchers said. Today, PBOC said it was keeping the rate…