Economics
China Adds Liquidity, Trims Rates Ahead of Poor GDP Data
- Cut follows other recent cuts to short-term rates by PBOC
- $14 billion injection via MLF half the amount maturing Friday
Outside the People's Bank of China (PBOC) headquarters in Beijing, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China’s central bank injected medium-term funding into the financial system Wednesday and cut the cost of the funds as expected, bolstering measures aimed at countering the economic fallout from the coronavirus pandemic.
The People’s Bank of China offered 100 billion yuan ($14 billion) via the one-year medium-term lending facility, cutting the rate to 2.95% from 3.15%. The reduction was expected as the central bank already cut the rate on 7-day market operations in late March and the different interest rates tend to move together.