SHANGHAI (Reuters) – China’s central bank partially rolled over maturing medium-term loans on Thursday, the same day when a cut in the banks’ reserve requirements takes effect.
The People’s Bank of China (PBOC) said in a statement it was keeping the rate on 100 billion yuan ($15.46 billion) worth of one-year medium-term lending facility (MLF) loans to some financial institutions steady at 2.95% from previous operations.
The fresh fund injection did not cover all the expiring MLF loans with a value of 400 billion yuan due on the same day.
China cut the amount of cash that banks must hold as reserves, effective on July 15, releasing around 1 trillion yuan in long-term liquidity to underpin its post-COVID economic recovery that was starting to lose momentum.
In the same statement, the PBOC said it had injected another 10 billion yuan worth of seven-day reverse repos into the financial system, offsetting same amount of such loans due on the same day.
($1 = 6.4688 Chinese yuan)
(Reporting by Winni Zhou and Andrew Galbraith; Editing by Jacqueline Wong)
