Core Viewpoint - The People's Bank of China (PBOC) is conducting a 600 billion yuan Medium-term Lending Facility (MLF) operation to maintain liquidity in the banking system, marking the sixth consecutive month of net MLF injection [1] Group 1: MLF Operation Details - On August 25, the PBOC will implement a fixed-quantity, interest-rate bidding, multi-price bidding method for the 600 billion yuan MLF operation, with a term of one year [1] - This operation comes as 300 billion yuan of MLF is set to mature this month, resulting in a net MLF injection of 300 billion yuan for August [1] Group 2: Purpose and Impact - The MLF is a monetary policy tool that provides medium-term base currency, influencing the cost of medium-term financing for financial institutions [1] - By adjusting the MLF rate, the PBOC aims to guide financial institutions in providing low-cost funds to the real economy, thereby reducing social financing costs [1]
明日 央行将开展6000亿元中期借贷便利MLF操作
Jing Ji Guan Cha Wang·2025-08-24 13:48