China Pumps $25 Billion in Funds to Banks While Keeping Key Rate on Hold
- Net fund injection in April is smallest since November
- Central bank may be evaluating impact of its easing in March
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China injected the least amount of medium-term cash into the banking system since November, a sign that policymakers are watching the effects of past easing steps as the nation’s economic recovery appears to be on track.
The People’s Bank of China offered 170 billion yuan ($25 billion) of funds to banks through the medium-term lending facility. That resulted in a 20 billion yuan net injection in April, the smallest since November. It also left the interest rate unchanged at 2.75%, the eighth month for it to stand pat, as expected by a majority of economists and analysts in a Bloomberg survey.