People’s Bank of China Holds Key Policy Rate Steady, Injects 4 Billion Yuan 7-Day Reverse Repos

China’s central bank, the People’s Bank of China (PBOC), maintained the interest rate on one-year medium-term lending facility (MLF) loans at 2.50%, as expected on Monday.

The PBOC rolled over 182 billion yuan ($25.08 billion) in maturing loans to financial institutions, with 97% of analysts in a Reuters poll anticipating this decision.

As 237 billion yuan worth of MLF loans were due to mature in the same month, the PBOC’s actions resulted in a net withdrawal of 55 billion yuan from the banking system.

Additionally, the central bank injected 4 billion yuan through seven-day reverse repos at an unchanged borrowing cost of 1.80%, according to an online statement.