China central bank ramps up fund injection via medium-term policy loans, rate unchanged

Kitco Media
By Reuters
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Reuters
SHANGHAI, March 15 (Reuters) - China's central bank ramped up liquidity injections when rolling over maturing medium-term policy loans for a fourth month in a row on Wednesday, while keeping the interest rate unchanged, matching market expectations. The People's Bank of China (PBOC) said it was keeping the rate on 481 billion yuan ($70.03 billion) worth of one-year medium-term lending facility (MLF) loans to some financial institutions at 2.75%, unchanged from the previous operation. In a Reuters poll of 28 market watchers conducted this week, all participants expected the MLF rate to stay unchanged, with 20 predicting fund offerings would exceed the maturity. With 200 billion yuan worth of MLF loans set to expire this month, the operation resulted in a net 281 billion yuan of fresh fund injections into the banking system. The central bank also injected 104 billion yuan through seven-day reverse repos while keeping the borrowing cost unchanged at 2.00%, it said in an online statement. ($1 = 6.8680 Chinese yuan) (Reporting by Winni Zhou and Brenda Goh; Editing by Edmund Klamann)

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