China central bank leaves key policy rate unchanged, as expected

By Thomson Reuters Mar 14, 2024 | 8:30 PM

SHANGHAI/SINGAPORE (Reuters) – China’s central bank on Friday left a key policy rate unchanged as expected when rolling over maturing medium-term loans.

The People’s Bank of China (PBOC) said it was keeping the rate on 387 billion yuan ($53.80 billion) worth of one-year medium-term lending facility (MLF) loans to some financial institutions unchanged at 2.50% from the previous operation.

In a Reuters poll of 36 market watchers, 32, or 89%, of all respondents, expected the central bank to keep the borrowing cost of the one-year MLF loans unchanged.

With 481 billion yuan worth of MLF loans set to expire this month, the operation resulted in a net 94 billion yuan fund withdrawal from the banking system.

The central bank also injected 13 billion yuan through seven-day reverse repos while keeping the borrowing cost unchanged at 1.80%, it said in a statement.

($1 = 7.1932 Chinese yuan)

(Reporting by Winni Zhou and Tom Westbrook; Editing by Muralikumar Anantharaman)