SHANGHAI (Reuters) - China’s central bank on Monday lent 200 billion yuan to financial to financial institutions via its one-year medium-term lending facility (MLF), with the interest rate unchanged, it said in a statement.
The interest rate for the one-year MLF was 3.30 percent, the People’s Bank of China (PBOC) said, the same as the previous such operation. It said it conducted the loans to maintain reasonably ample banking system liquidity.
A batch of MLF loans with a value of 188.5 billion yuan matures on Monday. The bank said it would not conduct reverse repurchase operations on Monday. No reverse repos are due to mature on Monday.
In the statement, the PBOC also said it would implement a previously announced third phase of cuts to the reserve requirement ratio for county-level rural commercial banks on Monday, releasing long-term capital worth about 100 billion yuan.
Following the cut, the ratio for county-level rural commercial banks will be 8%.
Reporting by Andrew Galbraith; editing by Kim Coghill
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