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China’s Central Bank Injects $47bn via Medium-Term Loans

China’s central bank injected funds through MLF loans into the financial system on Tuesday, while keeping the interest rate unchanged.


China's Central Commission for Discipline Inspection is investigating PBOC former head of monetary policy Sun Guofeng.
The People's Bank of China want to help stabilise the bonds market. (Reuters file image).

 

China’s central bank injected funds through medium-term loans into the financial system on Tuesday, while keeping the interest rate unchanged.

The People’s Bank of China (PBOC) said it was keeping the rate on 300 billion yuan ($47.19 billion) worth of one-year medium-term lending facility (MLF) loans to some financial institutions steady at 2.85%, as widely expected.

The 300 billion yuan injection exceeds the 200 billion in such loans maturing this week.

In January, the PBOC unexpectedly cut the one-year MLF rate 10 basis points to 2.85% from 2.95% previously, alongside a 10 basis-point cut in the seven-day reverse repurchase agreement rate.

The central bank also injected 10 billion yuan worth of seven-day reverse repos into the banking system, against 20 billion yuan in such loans maturing on Tuesday.

 

• Reuters with additional editing by Jim Pollard

 

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China Bond Yields Fall as Central Bank Flags More Easing

 

China’s Central Bank Indicates More Easing Policies to Come

 

 

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.