SHANGHAI, 23 July – China’s central bank on Tuesday granted a total of 497.7 billion yuan (72.31 billion dollars) in medium-term loans to financial institutions at unchanged interest rates.
Global financial markets are closing, while China expects to strengthen its policy of easing soon to support the slowdown in the economy.
The People’s Bank of China (PBOC) granted 200 billion yuan through its one-year medium-term loan (MLF) and another 297.7 billion yuan through targeted medium-term loans (TMLF), she said in a statement.
Interest rates on both liquidity facilities remained unchanged from the previous model. The one-year MLF and TMLF remained at 3.30 percent and 3.15 percent, respectively, the PBOC said.
The central bank also said that the liquidity of the banking system will be “reasonably sufficient” after the credit operations, while Tuesday’s operations were “substantially equivalent” to medium-term loans expiring that day, the statement said.
A batch of 502 billion yuan worth of MLF loans, along with another 160 billion yuan in reverse repos, will expire on Tuesday, according to Reuters calculation based on official data.
($1 = 6,8830 Chinese yuan) (report by Winni Zhou and Andrew Galbraith; cut by Kim Coghill)