SHANGHAI, March 15 (Reuters) – China’s central financial institution rolled over maturing medium-term coverage loans whereas preserving the rate of interest unchanged on Tuesday, defying market expectations of imminent financial coverage easing to prop up the cooling financial system.
The Individuals’s Financial institution of China (PBOC) stated it was preserving the speed on 200 billion yuan ($31.44 billion) value of one-year medium-term lending facility (MLF) loans CNMLF1YRRP=PBOC to some monetary establishments unchanged at 2.85% from the earlier operation.
However, as 100 billion yuan value of MLF loans have been maturing on Tuesday, the operation resulted in a web injection of 100 billion yuan in recent funds into the banking system.
Twenty-nine out of the 49 merchants and analysts, or 59% of all individuals polled by Reuters, predicted a discount to the one-year MLF charge.
The central financial institution additionally injected 10 billion yuan by way of seven-day reverse repos CN7DRRP=PBOC to offset identical quantity of such loans due on the identical day, whereas preserving borrowing prices unchanged at 2.1%, based on a web based assertion.
($1 = 6.3607 Chinese language yuan renminbi)
(Reporting by Winni Zhou and Andrew Galbraith; Enhancing by Kim Coghill)
((winni.zhou@thomsonreuters.com; +86 21 2083 0100; Reuters Messaging: winni.zhou.thomsonreuters.com@reuters.web))
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