China's central bank, as anticipated, maintained a key policy rate unchanged while renewing expiring medium-term loans. The People's Bank of China (PBOC) announced its decision to maintain the interest rate on 387 billion yuan ($53.80 billion) in one-year medium-term lending facility (MLF) loans to select financial institutions at 2.50%, consistent with the prior operation.
According to a Reuters survey involving 36 market analysts, 32, or 89% of respondents, foresaw the central bank's decision to retain the borrowing cost for the one-year MLF loans.
With 481 billion yuan of MLF loans due to mature this month, the operation led to a net withdrawal of 94 billion yuan from the banking system.
Additionally, the central bank disclosed that it injected 13 billion yuan through seven-day reverse repos while maintaining the borrowing cost at 1.80%.
Paraphrasing text from "Investing" all rights reserved by the original author.
