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BEIJING / WAM
China’s central bank announced its first medium-term lending facility (MLF) operation in the Year of the Dragon, continuing a streak of 15 consecutive months of net fund injections through MLF loans to maintain reasonable and ample liquidity in the banking system.
According to Global Times, the People’s Bank of China (PBOC) has announced that a sum of 500 billion yuan ($69.51 billion) has been infused into the market through the MLF facility.
This injection will have a maturity period of one year, with an unchanged interest rate of 2.5 percent, as reported by the Global Times.
Given that 499 billion yuan worth of MLF loans are due to mature in February, it means a net injection of 1 billion yuan into the market; and net fund injections via MLF loans have been carried out for 15 straight months, according to media reports.