The People’s Bank of China (PBoC) is expected to raise the money market rates again, if needed, while keeping the benchmark interest rate unchanged.

The central bank will maintain medium- and long- term funding costs appropriate to shore up the economy through unconventional monetary policy tools such as the MLF and PSL. Further, the PBoC is likely to tighten controls on cross-border outflows, while further opening up domestic capital markets to attract capital inflows, Scotiabank reported.

China will prioritize economic, financial and social stability ahead of a twice-a-decade leadership reshuffle at the 19th CPC National Congress due to be held in November. China’s top leadership has committed to seeking progress while maintaining stability.

Offshore yuan funding costs are expected to soar again as long as the depreciation pressure on the yuan intensifies in the future, which will help alleviate market concerns and stabilize the yuan exchange rate.

Meanwhile, China’s equities and bonds will finally be included in global benchmark indices.