4000亿！央行，明日操作！

Core Viewpoint - The People's Bank of China (PBOC) is continuing its trend of increasing liquidity in the banking system through a series of monetary policy tools, including the Medium-term Lending Facility (MLF), to maintain a stable and adequate liquidity environment [1][4][5]. Group 1: MLF Operations - On July 25, the PBOC will conduct a 400 billion yuan MLF operation with a one-year term, resulting in a net injection of 100 billion yuan for July, marking the fifth consecutive month of increased MLF operations [1]. - The MLF has shifted to a fixed quantity, interest rate bidding, and multiple price bidding method since March, indicating a reduced reliance on MLF as a monetary policy tool and focusing on liquidity provision [4]. - The MLF is expected to become a primary channel for medium-term liquidity provision, alleviating pressure on banks' net interest margins, as it offers stability and predictability for financial institutions [4]. Group 2: Overall Monetary Policy - The PBOC has achieved a net injection of 300 billion yuan in liquidity for July, combining 200 billion yuan from reverse repos, reflecting a continued moderate easing stance in monetary policy [4]. - The central bank aims to maintain a reasonable and adequate liquidity state through various tools, including pledged repos, MLF, and reverse repos, to support domestic demand and mitigate external pressures [5]. - The PBOC's liquidity toolbox is becoming more robust and well-distributed in terms of maturity, with long-term, medium-term, and short-term tools available to manage liquidity effectively [4].