SHANGHAI (Reuters) – China’s central bank on Thursday lent 500 billion yuan ($72.32 billion) to financial institutions via its one-year medium-term lending facility (MLF), keeping the interest rate unchanged, it said in a statement.
The interest rate for the one-year MLF was 3.30 percent, the People’s Bank of China (PBOC) said, the same rate as the previous operation.
The fresh fund injection effectively offsets the maturing of such loans to the tune of 463 billion yuan on the same day.
“The central bank rolled over the same amount of maturing 463 billion yuan worth of MLF on the day, and extended more to small- and medium-sized banks, bringing the total amount of MLF operations to 500 billion yuan,” the PBOC said in the statement.
The central bank also injected 10 billion yuan via reverse repo operations on Thursday, versus 30 billion yuan of such loans set to expire on the same day.
The central bank has been using the facility to channel funds more directly to sectors of the economy needing them most.
Reporting by Winni Zhou and Andrew Galbraith; Editing by Shri NavaratnamOur Standards:The Thomson Reuters Trust Principles.