MNI BRIEF: PBOC To Inject A Net CNY300 Bln Via MLF

The People’s Bank of China will inject CNY600 billion via the Medium-term Lending Facility on Thursday, adding a net CNY300 billion to liquidity. 

According to a statement on the PBOC website, the maturity of the operation will be one year, using a fixed-volume, interest rate bidding, and multiple-price allotment method, in a bid to maintain ample liquidity in the banking system. 

With the mature CNY300 billion of MLF,  the PBOC’s net MLF injection in September reached CNY300 billion, marking the seventh consecutive month of expanded rollover operations. Considering that the central bank also conducted a net CNY300 billion through outright reverse repos, the total net injection of medium-term liquidity this month amounted to CNY600 billion.

MNI's latest liquidity survey showed traders had expected the Bank to increase liquidity injections to offset cash demand at month-end before the Nationals Day holiday. (See: MNI CHINA MONEY MARKET INDEX: Concern Builds Over Q4 Slowdown)