China central bank rolls over MLF loans, injects funds via PSL

SHANGHAI (Reuters) – China’s central bank lent 156 billion yuan ($24.63 billion) to financial institutions on Monday via its 1-year medium-term lending facility (MLF) with rates unchanged and 80.1 billion yuan through pledged supplementary lending (PSL), it said in a statement.

The cash injection through MLF came as the first such operation after the People’s Bank of China (PBOC) cut the reserve requirement ratio (RRR) at commercial banks in April to repay their respective outstanding MLFs.

The new MLF injection effectively rolled over the same amount of such loans maturing on Monday. A batch of MLF worth 156 billion yuan was set to expire on the same day.

The interest rate for the one-year MLF was unchanged at 3.30 percent, according to the statement.

The PBOC said in the same statement that it skipped reverse repos on Monday morning.

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