(Beijing Comprehensive News) The People's Bank of China has invested 150 billion yuan (the same as the same as S $ 30 billion) funds by the Central Bank of China through MEDIUM-TERM Lending Facility (MLF).This is the first time that the central bank has surpassed MLF for the first time since March this year. When the bond market is turbulent and liquidity is facing seasonal pressure, it releases signals to care for funds and boost market confidence.
According to the announcement issued by the People's Bank of China on Thursday (December 15th), in order to maintain the banking system's liquidity reasonable and abundant, the central bank carried out 650 billion yuan MLF operations and the 2 billion yuan open market reverse repurchase operation to meet the financialInstitutional needs.
According to Bloomberg, this operation volume is higher than the one -year MLF of 500 billion yuan due on Thursday, and it also exceeds the sequels of the central bank expected by most economic analysts.However, the interest rate of winning the bid is maintained at 2.75 %, which is in line with prediction.
Reporting analysis, under the circumstances that China's economic continued to be affected by the epidemic and unstable credit recovery, the central bank has invested long -term funds through MLF to continue to make efforts in monetary policy, increase support for the economy, and meet banks at the same time to meet banks.Liabilities demand, help credit expansion.
On the other hand, in the recent recent impact of China's interest rates and credit markets that continued to encounter redeem from wealth management products, and the yield has soared sharply, the central bank has increased the scale of operation and can also partially relieve liquidity.
