MLF Net Increase To Support Growth - Securities Daily

The PBOC’s decision to increase the net amount of its medium-term lending facility (MLF) in February will help curb a rise in money market rates, which will help stabilise market expectations and allow banks to support economic growth by providing credit to the economy at a lower cost, according to the Securities Daily. Citing analysts, the paper said maintaining a stable policy rate on the one-year loan prime rate (LPR) in the short term will enhance stability in the exchange rate market, and alleviate pressure on banks' net interest margins. Downward adjustment in the five-year LPR is likely, especially if the real estate market improves less than expected, the paper said.