2024-04-17 14:55:22
On April 15, the People’s Bank of China injected 100 billion yuan ($13.82 billion) into the financial system as part of the medium-term lending program (MLF), Day.Az reports with reference to Interfax.
The rate on one-year loans issued under the MLF remained at 2.5%, the NBK said in a statement. The last time the Central Bank changed it was in August 2023, then it was reduced by 15 basis points (bps).
With 170 billion yuan in loans due this month, the net outflow of funds from the banking system will be 70 billion yuan. The withdrawal of funds was recorded for the second month in a row, Trading Economics notes.
The MLF is an important lending instrument used by the Chinese central bank to provide liquidity to commercial banks, and directly influences its prime rate (LPR), which became the benchmark in the summer of 2019. The annual LPR is currently 3.45% per annum.
The next decision regarding this rate will be made on April 20.