The People's Bank of China has invested medium- and long -term funds to the market through interim borrowing facilities (MLF) this month, helping the economic recovery and responding to the impact of new government bond issuance.This month's MLF single operation scale hit the largest monthly month since December 2016, and the relaxation strength is slightly more market expectations.
The People's Bank of China announced on the official website. In order to maintain the influence of short -term factors such as the liquidity of the banking system, the peak of the tax period, and the issuance of government bond issuance and payment.On the 15th), 495 billion yuan (RMB, the same below, about 92.2 billion yuan) open market reverse repurchase operations, and 1450 billion yuan MLF operation.
The central bank said that the seven -day reverse repurchase interest rate and MLF interest rate maintained 1.8%and 2.5%, respectively.
Bloomberg reported that China's latest October economic activity indicators were mixed.The consumer prices of residents announced in October before they were announced again, and the concerns of shrinking were still there.Financial data released earlier this week shows that new social financing mainly relies on government bond issuance. The loan demand for private sector is weak. Economic recovery still requires more macro policy support.
Liu Jie, director of the China Macro Strategy of Standard Chartered Bank, analyzed: "The level of liquidity injection exceeds market expectations."She pointed out that the scale of MLF injection is close to 25 basis points, but considering that the data in October showed new downlink pressure, the economy needs more support. Therefore, we still believe that the reserve ratio will be reduced by the end of the year. "
At the end of last month, the cost of non -silver institutions overnight by non -silver institutions rose accidentally. Considering that China ’s new 10 trillion yuan of government bonds will be issued within the year, the market pays close attention to related liquidity shocks.The launch will provide the market with medium and long -term liquidity.
In addition, due to the large demand for funds, the number of interbank deposit issuance last week set the largest week in April in late April. In the recent one -year interbank deposit interest rate, interest rates continued to be higher than MLF interest rates.Liu Jie said that this means that the banking system liquidity is tight, and the capital of the People's Bank of China is cheaper than the market. The bank's obtaining liquidity from the central bank is a very economical move.Essence
Under the influence of the continuous weak economy, the RMB against the US dollar has fallen by more than 5%since this year, and China's interest rate cuts may be restricted to a certain extent.
