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PBOC Said To Ask Lenders About MLF Demand

CHINA RATES

A piece doing the rounds that the PBOC has asked commercial lenders about demand for MLF loans of which CNY 400bn are due to mature this month. According to Reuters sources the Central Bank asked commercial banks earlier this week about expected demand for more MLF loans, this comes after the 0.5ppt RRR cut that is estimated to release around CNY 1tn of liquidity into the system. A rollover of some or all of the MLF funds would be seen as another dovish move and likely increase speculation that the Central Bank could cut its benchmark lending rates.

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