Core Viewpoint - The People's Bank of China (PBOC) has conducted a 900 billion yuan one-year Medium-term Lending Facility (MLF) operation, marking a net injection of 200 billion yuan, continuing the trend of net liquidity injection for eight consecutive months [1][2][3] Group 1: MLF Operations - In October, the PBOC also conducted a net injection of 400 billion yuan through reverse repos, resulting in a total net liquidity injection of 600 billion yuan for the month [2] - The net MLF injection of 200 billion yuan in October is slightly lower than the 300 billion yuan seen in August and September, but the overall long-term liquidity remains unchanged [2][3] Group 2: Market Conditions - The liquidity environment is under pressure due to a significant tax period and month-end challenges, prompting the PBOC to maintain a broad liquidity injection [4] - The PBOC's actions are expected to alleviate liquidity pressure and reduce volatility in the financial market [4] Group 3: Coordination with Fiscal Policy - The PBOC's liquidity injection supports the issuance of government bonds, reflecting a coordinated approach between monetary and fiscal policies [5] - The government is expected to issue 500 billion yuan in local government debt to address existing debt and stimulate effective investment, with total net financing for government bonds projected to reach one trillion yuan in October [5] Group 4: Future Monetary Policy Outlook - The PBOC is signaling a continued focus on quantity-based monetary policy tools, indicating a supportive stance for future operations [6][7] - The monetary policy is expected to remain moderately accommodative in the fourth quarter, with an emphasis on increasing credit supply to match economic growth and inflation expectations [7] - There is potential for the PBOC to implement reserve requirement ratio cuts or bond purchases in the fourth quarter to further enhance liquidity [8]
MLF连续八个月加量续做 数量型工具发力预期升温
Sou Hu Cai Jing·2025-10-27 16:43