The Chinese central bank injected 497.7 billion yuan into the banking system via both medium-term lending facilities (MLF) and targeted medium-term lending facilities (TMLF) on Tuesday 23 July.
On Tuesday the People’s Bank of China (PBOC) injected 200 billion yuan via one-year MLF as well as 297.7 billion via TMLF according to an official statement.
The rates for both instruments remained unchanged, at 3.30% for one-year MLF and 3.15% for TMLF.
The move coincided with the maturation of 502 billion yuan in MLF on the same date, with analysts forecasting no major changes to liquidity levels.
“The central bank’s extension of 200 billion yuan in MLF while adding TMLF operations is basically commensurate with maturing MLF,” said Wang Qing (王青), chief macro-analyst with Dongfang Jincheng to state media.
“Consequently medium and long-term liquidity levels will not see marked change.”