China’s central bank provides US $ 47.2 billion via medium-term loans, with unchanged interest rates
China’s central bank provides US $ 47.2 billion via medium-term loans, with unchanged interest rates

China’s central bank provides US $ 47.2 billion via medium-term loans, with unchanged interest rates

SHANGHAI: China’s central bank injected funds through medium-term loans into the financial system on Tuesday (February 15) while keeping interest rates unchanged.

The People’s Bank of China (PBOC) said it kept interest rates of 300 billion yuan ($ 47.19 billion) on one-year medium-term lending facility (MLF) loans to some financial institutions stable at 2.85 percent, as generally expected.

The supply of 300 billion yuan exceeds the 200 billion in such loans maturing this week.

In January, the PBOC unexpectedly lowered the 10-year MLF interest rate by 10 basis points to 2.85 percent from the previous 2.95 percent, along with a 10-basis point reduction in the seven-day reverse repurchase agreement.

The central bank also injected 10 billion yuan into seven-day reverse repos in the banking system, against 20 billion yuan in such loans that expired on Tuesday.

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