BEIJING, CHINA – JUNE 13: A woman walks past the People’s Bank of China (PBOC) building on June 13, 2023 in Beijing, China.
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China’s central bank cut its key medium-term lending rate on Thursday, a highly anticipated move as the economy’s post-Covid recovery continues to lose steam.
The People’s Bank of China lowered the one-year medium-term lending facility (MLF) loan interest rate for some financial institutions by 10 basis points, from 2.75% to 2.65%.
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The last time the central bank cut interest rates was in August 400 billion one-year MLF loanmaking Thursday’s move the first such rate cut in 10 months.
China’s medium-term lending facility is a funding channel that allows the central bank to inject liquidity into the banking system and influence interest rates on certain loans.
Earlier this week, the central bank lowered the 7-day reverse repurchase rate by 10 basis points from 2% to 1.9%, injecting 2 billion yuan through the 7-day repurchase. China’s largest state-owned commercial bank cut its deposit rate last week, according to a CNBC check.
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