China's central bank injects 500 billion yuan through multilateral year, rates remain unchanged: statement

SHANGHAI (Reuters) – China's central bank has lent 500 billion yuan ($ 72.32 billion) to financial institutions through its one-year medium-term loan facility (MLF), while maintaining the rate. of interest unchanged, according to a statement.

The one-year MLF interest rate was 3.30 percent, said the People's Bank of China (PBOC), at the same rate as in the previous transaction.

The new injection of funds effectively offsets the maturity of these loans to the tune of 463 billion yuan the same day.

"The central bank has exceeded the same amount of MLF maturing for 463 billion yuan that day, and extended more to small and medium-sized banks, bringing the total amount of the Fund's operations to 500 billion yuan," he said. declared the PBOC to the declaration.

The central bank also injected 10 billion yuan through repo transactions on Thursday, compared with 30 billion yuan of such loans expiring on the same day.

The central bank has used this mechanism to allocate funds more directly to the sectors of the economy that need them most.