SHANGHAI (Reuters) – China’s central bank conducted a medium-term loan operation on Tuesday and left the interest rate unchanged.
The People’s Bank of China (PBOC) lent 300 billion yuan ($41.3 billion) in one-year medium-term lending facility (MLF) loans to some financial institutions at 2.00%, unchanged from the previous rate, according to an online statement from the bank.
The loan operation was meant to “keep banking system liquidity reasonably ample”, the PBOC said in the statement.
The bid rates ranged from 1.80% to 2.20%, the central bank said, adding that the balance of MLF loans stood at 4.094 trillion yuan after Tuesday’s operation.
A batch of 500 billion yuan in MLF loans was due to expire this month.
($1 = 7.2585 Chinese yuan)
(Reporting by Shanghai Newsroom; Editing by Tom Hogue)
