China central bank unexpectedly injects 265 billion yuan via one-year MLF, rate unchanged

SHANGHAI (Reuters) – China’s central bank said on Monday that it lent 265 billion yuan ($38.58 billion) to financial institutions via its one-year medium-term lending facility (MLF) with rates unchanged.

The move was not expected by market participants because no MLF loans were due to mature on Monday.

In the past, the People’s Bank of China (PBOC) typically injected liquidity through MLF loans on the day existing loans were due to mature, but since June it has injected funds even when no debt was maturing.

The interest rate for the one-year MLF was 3.30 percent, the PBOC said, unchanged from the previous one-year MLF injection.

The PBOC said in the same statement that it skipped reverse repos on the same day, with no repos maturing.

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