The People's Bank of China announced on Monday (January 15) that 995 billion yuan (RMB, Same as Sim, S $ 189.5 billion) in the medium -term borrowing convenience (MLF) operation, but maintained the bid interest rate at 2.50%, and the bid interest rate was 2.50%.Out of market expectations.
The People's Bank of China announced on the official website that 995 billion yuan of MLF operations were launched to maintain a reasonable and abundant liquidity of the banking system. The interest rate was 2.50%and the term was one year.The People's Bank of China also carried out the 89 billion yuan open market reverse repurchase operation, with a bid interest rate of 1.80%and a period of seven days.
Reuters launched an investigation earlier and visited 35 markets, and 19 of them predict that the central bank will reduce the MLF interest rate to boost the weak Chinese economy.The vast majority of interviewees also predict that the amount of new funds that the central bank will inject to the financial system will be higher than the amount of capital.
779 billion yuan MLF loan will expire this month, which means that the People's Bank of China has injected funds for the banking system by this operation at 216 billion yuan.
