China central bank injects 950bn yuan of medium-term loans, rate unchanged for 8th straight month
- In the same online statement, the PBOC also said it has injected another 10 billion yuan via seven-day reverse repos, with the rate unchanged.
SHANGHAI: China's central bank on Tuesday rolled over maturing medium-term loans while keeping the interest rate unchanged for an eighth straight month.
The People's Bank of China (PBOC) said in a statement it was keeping the rate on 950 billion yuan ($145 billion) worth of one-year medium-term lending facility (MLF) loans to financial institutions steady at 2.95% from previous operations.
The fresh fund injection far exceeded two batches of such MLF loans that are set to expire in December, with a total volume of 600 billion yuan.
Markets also expect no change for the country's benchmark loan prime rate (LPR) at its monthly fixing next Monday.
The central bank has made two cuts to the borrowing cost of MLF loans this year, with a total size of 30 basis points.
The PBOC said in the statement that the rollover was meant to keep "banking system liquidity reasonably ample", and the fund injection "fully met financial institutions' demand".
In the same online statement, the PBOC also said it has injected another 10 billion yuan via seven-day reverse repos, with the rate unchanged.
The MLF, one of the PBOC's main tools in managing longer-term liquidity in the banking system, serves as a guide for the LPR, which is set monthly using assessments from 18 banks.
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