China Offers $145 Billion to Banks as Cash Supply Tightens
- Money market rates decline after PBOC’s MLF injection
- Data suggest growth recovery gathered pace in November
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China injected cash into the financial system by offering medium-term loans, in the government’s latest effort to ensure the country’s banks have sufficient liquidity.
The People’s Bank of China added 950 billion yuan ($145 billion) of one-year cash via the medium-term lending facility on Tuesday, more than offsetting the 600 billion yuan that matures in December. That’s the fifth straight month of net injections using the tool. It kept interest rates on the loans unchanged at 2.95%.