China Rolls Over $31 Billion in Medium-Term Loans to Banks
- Move signals PBOC is in no hurry to end support for economy
- Tightening sent borrowing cost to highest since 2015 in Jan.
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China provided medium-term funds to lenders on Thursday, giving banks some relief after its cash drainage last month triggered the country’s worst liquidity squeeze since 2015.
The People’s Bank of China offered 200 billion yuan ($31 billion) of one-year liquidity with its medium-term lending facility, according to a statement. That helped offset the loans that mature this month. It kept the interest rate on the funds unchanged at 2.95%.