Press "Enter" to skip to content

PBOC MLF balance hit new record high, RRR cut more about structural rebalancing

The People's Bank of China announced that it will lower the reserve requirement ratio (RRR) by 100bp for most banks, and it will release about 1.2 trillion yuan liquidity, including 450 billion to be used to replace Mid-Term Lending Facility (MLF) maturing on Oct. 15 while releasing 750 billion yuan to offset the liquidity-drain from tax submission in second half of October, according to the central bank.
The move comes after the central bank's MLF outstanding hit a new record high. By the end of September, the central banks' MLF balance had surged to 5.38 trillion yuan, the highest on record, according to data released by the central bank.

To continue reading, please subscribe.

FREE TRIAL

We highly value independence. Yuan Talks is solely funded by subscriptions from thousands of intelligent readers like you. 

What you'll get:

  • Systematic, timely and data-driven reporting on China's economy and financial markets with details, data and perspectives you don't read elsewhere!
  • Daily Brief newsletter delivered before market open every weekday wrapping up the most important China-related stories.
  • Weekly Market Wrap-up on A shares, Chinese bonds, the Yuan and commodities!
  • Interviews with China experts. We find you insights you should never miss!
  • Conference calls and events. Nothing is better than talking to newsmakers, experts and reporters directly, right?

 

Already have an account? Sign In

Top