PBOC Injects 200 Billion Yuan via 500 Billion Yuan MLF as It Expands Liquidity Tools
Updated
Updated · Xinhua · Jun 26
PBOC Injects 200 Billion Yuan via 500 Billion Yuan MLF as It Expands Liquidity Tools
3 articles · Updated · Xinhua · Jun 26
Summary
500 billion yuan in one-year MLF funds was supplied by the PBOC, creating a net 200 billion yuan injection after 300 billion yuan matured this month.
The operation is meant to keep banking liquidity ample, meet lenders' demand for longer-term funding and support smooth government bond issuance.
The central bank said the MLF was conducted through variable-rate tenders with a fixed quantity and a multiple-price auction format.
June 29 and June 30 will also see new overnight reverse repo operations, extending the PBOC's toolkit to handle banks' short-term liquidity needs.
That overnight facility was later launched with 300 billion yuan while the 7-day reverse repo rate was kept at 1.4%, underscoring a broader push to refine policy transmission.