China c.bank seen holding medium-term lending rate steady Monday

China’s central bank is widely expected to leave a medium-term interest rate unchanged and drain some cash from the banking system when rolling over such maturing loans on Monday, a Reuters survey showed.

While the economy continues to sputter, a weak Chinese currency has remained the key constraint limiting Beijing’s monetary easing efforts, as that could further widen the yield gap with other major economies, particularly the United States, and trigger more capital outflows.