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PBOC Expected To Increase MLF Quota In Feb - China Securities News

CHINA PRESS

The PBOC is expected to increase the quota of its Medium-term Lending Facility in February as it looks to ensure a stable economic rebound, according to China Securities News. The expectation a higher MLF quota is strong, but PBOC policy will be influenced by factors such the demand for physical credit, the speed of cash circulation, the rebalancing of deposits between institutions, and the effects of peak tax season in February. The decline in market interest rates in recent days is mainly due to the central bank's increase in open market operations to meet institutional liquidity needs and stabilise market expectations, the paper said.

MNI Beijing Bureau | lewis.porylo@marketnews.com
MNI Beijing Bureau | lewis.porylo@marketnews.com

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