The yuan has come under pressure following Donald Trump's victory in the U.S. presidential election. Wang Tao, chief China economist at UBS Investment Bank, estimates the MLF to remain at 2.0% this year before coming down to 1.

China's central bank injected 900 billion yuan ($124.3 billion) into the banking system on Monday via one-year policy loans, as local governments step up selling bonds to ease debt burdens. The People's Bank of China (PBOC) lent the medium-term facility (MLF) loans to financial institutions at 2%,

China’s central bank kept a key policy rate steady in November and drained billions in liquidity from the financial system via a medium-term liquidity management tool.

The Bank of England will likely lower borrowing costs gradually in the months ahead, but should remain “vigilant” for signs of an economic slowdown that could require it to move more rapidly, Deputy Governor Clare Lombardelli said.

Deputy Bank of England Governor Clare Lombardelli said on Monday she was more worried about the risk that inflation comes in higher - not lower - than the central bank has forecast as she made the case for only gradual reductions in interest rates.

Clare Lombardelli warned it was 'too early to declare victory on inflation' because the pace of wage growth was not slowing as much as expected.