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PBOC May Use More Flexible MLF Injections: Daily

CHINA PRESS

The PBOC has signaled that it may keep the previously fixed-date MLF injections more flexible in the future following the CNY200 billion operation on Monday, the Economic Information Daily said citing Ming Ming, the chief fixed-income analyst with Citic Securities. The injection on Monday sought to maintain month-end liquidity and prepare for the CNY300 billion MLF rolling over on Dec 7, at a time when banks must pay required deposits to the PBOC. The PBOC normally issues MFL on the 15th day of the month. The MLF and increased fiscal spending in the coming month should help ease long-term debt pressure on banks in addition to a series of SOE bond defaults and competition to win deposits, Ming said.

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