The rate on one-year loans issued under the MLF remained at 2.5%. The last time the Central Bank changed it was in August 2023, when it was reduced by 15 basis points.
The People’s Bank of China (PBOC, the country’s central bank) injected 182 billion yuan ($25.1 billion) into the financial system on June 17 under the medium-term lending program (MLF). This was discussed in the NBK message, media reports.
It was noted that the rate on loans for a period of one year issued under the MLF remained at 2.5%. The last time the Central Bank changed it was in August 2023, when it was reduced by 15 basis points.
Of the 237 billion yuan worth of loans coming due this month, the banking system recorded a net outflow of 55 billion yuan.
The Chinese Central Bank also provided banks with 4 billion yuan as part of seven-day reverse repo operations, keeping their rate at 1.8% per annum.
As you know, the MLF is an important lending instrument used by the Chinese Central Bank to provide liquidity to commercial banks, and has a direct impact on its prime rate (LPR), which became the benchmark in the summer of 2019 .The annual LPR is currently 3.45% per annum.
The next decision on this rate will be made on June 20.
We remind you that the international rating agency Fitch lowered its outlook on China’s credit rating to negative.
It was also reported that capital outflow from China worsened in April this year to the highest level since December 2016. Chinese banks sold $36.7 billion to their customers last month.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.