PBOC to Change One-Year Loan Operation Date in Policy Shift
- Move in MLF operation timing may take place as soon as August
- Central bank began overhauling its policy framework recently
The PBOC began an overhaul of its policy framework, recently, allowing it to operate more like global peers and influence market borrowing costs more effectively.
Source: BloombergThis article is for subscribers only.
China’s central bank is planning to move the date on which it injects one-year liquidity to domestic lenders to the 25th of each month, according to people familiar with the matter, as part of a shift to relying primarily on a short-term interest rate to steer markets.
The change will take effect as early as in August, the people said, asking not to be identified because they are not authorized to speak publicly. The People’s Bank of China now conducts its medium-term lending facility operation on the 15th of every month.