MNI: PBOC Cuts 14-Day Reverse Repo Rate, MLF Rate Unchanged
The People's Bank of China (PBOC) reduced its 14-day reverse repo rate by 20bp to 1.95% and held the seven-day reverse repo rate and medium-term lending facility unchanged at 1.8% and 2.5%.
The central bank conducted CNY591 billion via one-year MLF, CNY105 billion via seven-day repo and CNY34 billion via 14-day repo on Friday. The operation has led to a net injection of CNY367 billion after offsetting the maturity of CNY363 billion reverse repos and CNY400 billion MLF today, according to Wind Information.
- The seven-day weighted average interbank repo rate for depository institutions (DR007) fell to 1.8423% at 09:30am local time from the close of 1.9463% on Thursday.
- The CFETS-NEX money-market sentiment index, measuring interbank money-market liquidity, closed at 48 on Thursday, the same as Wednesday's print. A higher reading points to tighter liquidity condition, with 50 representing an equilibrium.