PBOC injects CNY100 billion via one-year MLF at 2.95%

Dhwani Mehta FXStreet

The People’s Bank of China (PBOC) injected CNY150 billion via one-year medium-term lending (MLF) facility on Thursday.

The Chinese central bank kept the rate for the one-year MLF operation unchanged for the 11th straight month at 2.95%.

Separately, the central bank drains medium-term liquidity from the banking system, sells 10 billion yuan of the 7-day reverse repo at 2.2%.

Market reaction

USD/CNY sticks to daily highs at 6.5350 on the latest PBOC operation. The spot trades at 6.5349, up 0.09% at the time of writing.

Meanwhile, the AUD/USD pair is retreating from three-week highs of 0.7745 despite a strong Australian jobs report.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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