The People’s Bank of China (PBoC) injected a total of CNY 300 billion into financial institutions through a one-year medium-term lending facility (MLF) on June 25th to maintain ample liquidity in the country’s banking system. The PBoC stated that the MLF operation would be conducted using a fixed-quantity, interest-rate bidding, and multiple-price bidding method. This month’s net MLF injection declined compared to the CNY 500 billion in the previous month. With CNY 182 billion in MLF funds maturing this month, the move resulted in a net liquidity injection of CNY 118 billion, marking the fourth straight month of increased MLF operations. Starting in March, the central bank adopted a multiple-price bidding method for MLF operations. As a result, it no longer announces a fixed interest rate for the facility.
