SHANGHAI, June 15. (Reuters) – The central bank of China extended the maturity of medium-term loans on Tuesday, while keeping the interest rate unchanged for the 14th consecutive month.
The People’s Bank of China (PBOC) said it kept rates on one-year medium-term loans (MLF) of 200 billion yuan ($ 31.27 billion) to some financial institutions at 2.95% from previous transactions.
The new infusion of funds through the liquidity instrument will offset the same amount of such MOF loans due to be repaid on the same day.
The central bank said it injected another 10 billion yuan of seven-day reverse repo into the banking system on the same day. With a maturity of RMB 20 billion in reverse repos, the NBK spent a net RMB 10 billion on Tuesday. (1 US dollar = 6.3967 RMB)
Vinnie Zhou and Andrew Galbraith reporting; Edited by Jacqueline Wong