China’s central bank rolled over maturing medium-term loans while keeping borrowing costs unchanged for the fourth straight month, Reuters reports. The People’s Bank of China said in a statement it was keeping the rate on 700 billion yuan (US$100.74 billion) worth of one-year medium-term lending facility (MLF) loans to financial institutions steady at 2.95 percent from previous operations. The fresh fund injection well exceeds two batches of MLF loans that are set to expire in August, with a total volume of 550 billion yuan. The PBOC said in the statement that the rollover was a one-off MLF operation for the whole month to “fully meet market demand”. It also said it injected another 50 billion yuan through seven-day reverse repos while also keeping the borrowing cost steady.

Source: The Standard August 17, 2020 02:03 UTC