Chinese central bank cuts rates on medium-term loans, reverse repos

The central bank also added 100 billion yuan of funds into the market via seven-day reverse repos at an interest rate of 2.1 per cent, down from 2.2 per cent.

With 500 billion yuan worth of MLF and 10 billion yuan worth of reverse repos maturing on the same day, the aforementioned moves will lead to a net liquidity injection of 290 billion yuan into the market, official Chinese media reported.

The MLF tool was introduced in 2014 to help commercial and policy banks maintain liquidity by allowing them to borrow from the central bank using securities as collateral.

ALCHEMPro News Desk (DS)