China cbank injects $57 bln via medium term loans, keeps rate unchanged for 3rd straight month

Credit: REUTERS/Jason Lee

China's central bank on Wednesday rolled over maturing medium-term loans while keeping borrowing costs unchanged for the third straight month in a row.

SHANGHAI, July 15 (Reuters) - China's central bank on Wednesday rolled over maturing medium-term loans while keeping borrowing costs unchanged for the third straight month in a row.

The People's Bank of China (PBOC) said it was keeping the rate on 400 billion yuan ($57.09 billion) worth of one-year medium-term lending facility (MLF) loans to financial institutions CNMLF1YRRP=PBOC steady at 2.95% from previous operations.

The decision should indicate a similar action to the country's benchmark loan prime rate (LPR) next Monday.

Wednesday's MLF operation is a rollover of two batches of maturing MLF debt and a targeted medium-term lending facility (TMLF) due this month, the PBOC said in a statement on its website.

Two batches of MLF loans are set to expire in July, with a total volume of 400 billion yuan. Another batch of TMLF loan of 297.7 billion yuan is due to expire next Thursday.

The TMLF is allowed to roll over with a total term of three years, according to the statement.

The MLF, one of the PBOC's main tools in managing longer-term liquidity in the banking system, serves as a guide for the LPR, which is set monthly using assessments from 18 banks.

($1 = 7.0060 Chinese yuan)

(Reporting by Winni Zhou and Andrew Galbraith Editing by Shri Navaratnam)

((winni.zhou@thomsonreuters.com; +86 21 2083 0100; Reuters Messaging: winni.zhou.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More