China central bank retains key policy rate

SHANGHAI/SINGAPORE — China's central bank left a key policy rate unchanged as expected on Monday when rolling over maturing medium-term loans, and drained some funds from the banking system.

The steady MLF (medium-term lending facility) rate comes in line with market expectations, as narrowing interest margins and a weakening currency remain key constraints limiting Beijing's scope to ease monetary policy to support the world's second-largest economy.