People’s Bank of China left its MLF rate unchanged – recap

The news earlier was a disappointment from the PBoC, which was expected to cut its MLF rate today to 2.4%. It did not:

Via Reuters is a bit of a recap:

  • China’s central bank
    boosted liquidity injections, added in 995 billion yuan vs. 779 billion yuan worth of MLF loans set to expire this month, a net 216 billion yuan fresh fund injection into the banking system
  • but surprised markets by leaving
    the interest rate unchanged at 2.5% when rolling over maturing
    medium-term policy loans
  • Many analysts, not all, had expected the central bank to cut the MLF
    rate to help shore up the weak economy


Yuan has chopped around and is not a lot net changed:

This article was written by Eamonn Sheridan at Source