MNI BRIEF: PBOC Net Injected CNY118 BL Via MLF

The People’s Bank of China injected a net CNY118 billion into the financial system via its medium-term lending facility (MLF) on Wednesday, aiming to ensure ample liquidity in the interbank market.

According to a statement on the PBOC’s website, the central bank conducted a CNY300 billion one-year MLF operation using a fixed-amount, interest-rate tender with multiple price bids. With CNY182 billion in MLF maturing this month, the operation results in a net injection of CNY118 billion for June, marking the fourth straight month of net MLF additions.

In addition, the PBOC conducted two outright reverse repo operations on June 6 and June 16, with three-month and six-month maturities separately, injecting a net CNY200 billion. 

Altogether, net liquidity injections via medium-term instruments, including MLF and outright reverse repos, totalled CNY318 billion in June, reinforcing the central bank’s stance to maintain stable market liquidity amid the increasing mid-year fund demand and huge maturity of lenders' negotiable certificates of deposit. (See MNI PBOC WATCH: June LPR To Hold, Ample Liquidity Seen)