MNI BRIEF: PBOC Cuts One-Year MLF Rate By 30bp
MNI (BEIJING ) - The People’s Bank of China cut the one-year medium-term lending facility rate by 30 basis points on Wednesday, draining a net of CNY291 billion from the interbank market, according to a statement on its website.
The Bank conducted a CNY300 billion one-year MLF operation even though a total of CNY591 billion matured on Sept 15 in a bid to maintain “reasonable and adequate liquidity” in the banking system, the statement said. The rate was reduced to 2.0% from 2.3%, with a maximum bidding rate of 2.30%, a minimum bidding rate of 1.90%, and the winning rate at 2.0%, the PBOC noted.
Following the operation, the MLF's outstanding balance reached CNY6.88 trillion. The cut was in line with expectations following the PBOC's package of policy easing revealed by Governor Pan Gongsheng on Tuesday. (See MNI:More RRR Cuts Would Pave Way For China Bond Sales-Advisors)