Daily Management Review

China's central bank injects 995B yuan into the financial system under medium-term lending program


The People's Bank of China (PBOC) injected 995 billion yuan ($140 billion) into the financial system under its medium-term lending program (MLF) on Monday.

According to the PBOC statement, the interest rate on one-year loans made under the MLF stayed at 2.5 percent. It was last modified by the PBOC in August 2023, when it was lowered by 15 basis points (bps).

According to Trading Economics, net inflows into the banking sector will equal 216 billion yuan, with loans totaling 779 billion yuan set to expire in January.

The Chinese central bank also lent banks 89 billion yuan at an annualized rate of 1.8% in August within a seven-day reverse repurchase operation.

The Chinese central bank uses MLF as a credit instrument to give commercial banks liquidity.

source: tradingeconomics.com