Chinese Central Bank Undertakes 400B Yuan on 1-year MLF’s, Rates Remain Unchanged

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The People’s Bank of China (PBOC) undertook 400 billion yuan in 1-year medium-term lending facilities (MLF) operations and 2 billion yuan in 7-day reverse-repo operations as part of its open market operations on 15 September.

The rate for the 1-year MLFs was 2.75% while the rate for the reverse repos was 2.00%, both of which were unchanged compared to the last round of open market operations undertaken by PBOC.

PBOC said that the operations were for the purpose of maintaining rationally ample liquidity in the banking system, and fully satisfied demand from financial institutions.