The People’s Bank of China (PBOC) undertook 800 billion yuan in one-year medium-term lending facilities (MLF) operations on Monday 16 November.
The rate for the MLF was 2.95%, on par with the rate for the last MLF operation. As a consequence the one-year loan prime rate (LPR) that will be announced on 20 November is expected by analysts to remain unchanged.
PBOC said that it did not undertake any reverse repo operations on the same date.
Given that in November a total of 600 billion yuan are set to mature, the latest MLF operation results in a net injection of 200 billion yuan, well ahead of market expectations.