PBOC Undertakes 600B Yuan in 1-Year MLF Operations on 15 September

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The People’s Bank of China (PBOC) undertook 600 billion yuan in medium-term lending facilities (MLF) operations on 15 September, with a view to “maintaining rationally ample liquidity in the banking system.”

The rate for the 1-year MLF’s was 2.95%, remaining unchanged for the 18th consecutive month.

On the same date PBOC also undertook 10 billion yuan in reverse repo operations at a rate of 2.20%, also unchanged from the previous round of open market operations.

Liu Lu (刘璐), fixed-income analyst with Pingan Securities, said to Cailianshe that the liquidity shortfall in September wasn’t significant, and the Chinese central bank was still in a “period of observation” for any further monetary loosening.

“The level and urgency of monetary and credit loosening is comparatively low, and policy remains patient.”

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