China's Central Bank Maintains Medium-Term Rate

China's central bank, The People's Bank of China (PBOC), has kept its medium-term lending facility (MLF) rate unchanged at 2.50% for 100 billion yuan in loans. While a minimal net withdrawal occurred, the central bank also injected additional funds via seven-day reverse repos, maintaining borrowing costs at 1.80%.

China's central bank, The People's Bank of China (PBOC), has decided to keep the medium-term lending facility (MLF) rate intact at 2.50% for 100 billion yuan ($13.8 billion) in loans. This decision aligns with market expectations, based on a recent Reuters poll among 35 analysts, where only one anticipated a marginal interest rate cut while most foresaw a partial roll-over.

Currently, 103 billion yuan in MLF loans are set to mature this month, resulting in a net withdrawal of 3 billion yuan from the banking system following the bank's newly announced operation.

Furthermore, the PBOC also injected 129 billion yuan into the financial system through seven-day reverse repos, keeping borrowing costs steady at 1.80%, according to their online statement. This strategic move aims to ensure liquidity remains stable in the financial domain. ($1 = 7.2500 yuan)

(With inputs from agencies.)