PBOC cuts targeted 1-year MLF rate by 20 bps, injects 56.1 bln yuan
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The People's Bank of China (PBOC) extended one-year loans through its targeted medium-term lending facility (MLF) on Friday by injecting CNY56.1 billion at a reduced lending rate of 2.95%.
The lending rate on one-year targeted MLF was cut to 2.95% from 3.15% previous.
Despite the latest MLF injection, MLFs worth 267 billion yuan are maturing today, making it a net drain.
AUD/USD reaction
On the liquidity injection and MLF rate cut by the Chinese central bank, AUD/USD was little changed, now trading at 0.6354, down 0.23% so far. The Aussie extends its retreat from multi-day highs amid risk-off market mood induced broad dollar demand.
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