PHILO PHOTO: A man with a mask walks past the headquarters of the People’s Bank of China, the central bank, in Beijing, China, as the country is hit by an outbreak of the new coronavirus, February 3, 2020. REUTERS / Jason Lee
SHANGHAI (Reuters) – China’s central bank rolled over medium-term mortgages on Monday, keeping borrowing costs unchanged for the fourth straight month.
The People’s Bank of China (PBOC) said in a statement that it keeps the rate of 700 billion yuan ($ 100.74 billion) worth of annual loans for medium-term loan facilities (MLF) to financial institutions stable at 2.95% of previous operations.
Analysts also do not expect a change in the primary interest rate (LPR) of the benchmark loan on Thursday.
The injection of fresh funds larger than two parties MLF loans set to expire in August, with a total volume of 550 billion yuan.
The PBOC said in a statement that the full-month rollover was a one-off MLF operation to “fully meet market demand”.
It also said it injected another 50 billion yuan through seven-day reverse repos, while also keeping borrowing costs stable.
The MLF, one of the PBOC’s most important instruments in managing long-term liquidity in the banking system, serves as a guide for the LPR, which is set up monthly with assessments from 18 banks.
Report by Winni Zhou and Andrew Galbraith; Edited by Jacqueline Wong
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