PBOC injects CNY200 billion via one-year MLF at 2.95%

Dhwani Mehta FXStreet

The People’s Bank of China (PBOC) injected CNY200 billion via one-year medium-term lending (MLF) facility on Monday.

The Chinese central bank conducted the one-year MLF operation at 2.95%, unchanged from the previous operation. The PBOC kept the rates unchanged for the seventh consecutive operation.

The central bank said that it would Conduct MLF Operation in December, adding that the size of the operation will be decided by the market demand.

Market reaction

USD/CNY is trades better bid, as the Chinese currency fails to benefit from the upbeat PMI data and the latest PBOC operation. The spot trades 0.07% higher at 6.5781, at the time of writing.

Meanwhile, the AUD/USD pair battles 0.7400, looking to retest three-month tops at 0.7415 amid upbeat Chinese business activity data and broad-based US dollar weakness on vaccine hopes.

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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