ប្រទេសចិនបានបញ្ចូលទឹកប្រាក់ចំនួន ៦០០ ពាន់លានយ័នទៅក្នុងប្រព័ន្ធហិរញ្ញវត្ថុដោយរក្សាអត្រាការប្រាក់មិនប្រែប្រួលសម្រាប់ខែទី ១៦

People’s Bank of China (PBOC) left the interest rate on 600 billion yuan (US$92.6 billion) worth of one-year medium-term lending facility (MLF) unchanged

The central bank said the loan operation was meant to ‘fully meet financial institutions’ liquidity demand’ while keeping the fund conditions ‘reasonably ample’

China’s central bank injected billions of yuan through medium-term loans into the financial system on Monday, while keeping the interest rate unchanged for the 16th month in a row.

The People’s Bank of China (PBOC) kept the rate on 600 billion yuan (US$92.6 billion) worth of one-year medium-term lending facility (MLF) loan to some financial institutions steady at 2.95 per cent from previous operations.

The central bank said the loan operation was meant to “fully meet financial institutions’ liquidity demand” while keeping the fund conditions “reasonably ample”.

The move “took into account that financial institutions could use part of the funds freed from a reduction to reserve requirement ratio (RRR) in July to pay back MLF loans due this month”, the PBOC added.

In the same online statement, the central bank said Monday’s operation was a rollover of 700 billion yuan of maturing MLF loans due on Tuesday.

The PBOC delivered a surprise cut to banks’ RRR in July while highlighted policy stability in its second quarter monetary policy report, dampening market expectations for more aggressive monetary easing including interest rate cuts.

But some analysts and economists have argued that widening outbreaks of the Delta variant across the country, torrential rains and flooding, and the slowing economy suggested by recent data all required more easing measures.

Meanwhile, some bond traders said huge amounts of MLF maturity could weigh on cash conditions in the remainder of this year.

A total of 3.05 trillion yuan worth of MLF loans is set to expire in the fourth quarter of this year, according to Reuters calculations based on the official data.

The central bank also injected another 10 billion yuan worth of seven-day reverse repos into the banking system on the day.

SCMP