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Asia, News

China rolls over medium-term loans, rate unchanged for 17th month

SHANGHAI, Sept 15 (Reuters) – China’s central bank rolled over maturing medium-term loans on Wednesday, while keeping the interest rate unchanged for the 17th month in a row.

The People’s Bank of China (PBOC) said it was keeping the rate on 600 billion yuan ($93.19 billion) worth of one-year medium-term lending facility (MLF) loans to some financial institutions steady at 2.95% from previous operations.

The liquidity operation effectively covered the same amount of maturing MLF loans due the same day, and the PBOC attributed the move to “maintain banking system liquidity reasonably ample”, according to a statement published on its website.

The central bank also injected another 10 billion yuan worth of seven-day reverse repos into the banking system on the day, offsetting the same amount of such short-term liquidity due on Wednesday. ($1 = 6.4382 Chinese yuan)

(Reporting by Winni Zhou and Andrew Galbraith; Editing by Jacqueline Wong)

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