BRI NEWS China's central bank injects market liquidity via MLF


China's central bank injects market liquidity via MLF


13:08, August 28, 2019


Photo: VCG

BEIJING, Aug. 26 (Xinhua) -- China's central bank Monday pumped 150 billion yuan (21.25 billion U.S. dollars) of funds into the market via the medium-term lending facility (MLF) to maintain liquidity.

The funds will mature in one year with an interest rate of 3.3 percent, according to the People's Bank of China (PBOC).

With no PBOC liquidity tools maturing Monday, the operation effectively led to a net injection of the same amount of funds.

The MLF tool was introduced in 2014 to help commercial and policy banks maintain liquidity by allowing them to borrow from the central bank using securities as collateral.

China will keep its prudent monetary policy "neither too tight nor too loose" while maintaining market liquidity at a reasonable level in 2019.

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue