PBOC keeps one-year MLF rate unchanged at 2.75%

Anil Panchal FXStreet

After announcing the USD/CNY fix, the Chinese central bank, namely the People's Bank of China (PBOC) also performed its monthly duty of announcing the Medium-term Lending Facility (MLF) rates. That said, the PBOC's MLF for one-year left unchanged at 2.75%, per the latest update.

Also read: PBOC sets USD/CNY reference rate at 6.9654 vs. 6.9481 previous

USD/CNY grinds higher

Following the PBOC announcements, USD/CNY renews a two-month high at 6.9583 while extending the six-day uptrend by the press time.

About PBOC MLF rate

The PBOC's Medium-term Lending Facility (MLF) rate is a benchmark interest rate that is typically higher than the benchmark lending rate and one that banks in China can use to borrow funds from the central bank for a period of 6 months to 1 year. Markets often gauge from the MLF decision as to what changes may or may not be made to the monthly Loan Prime Rate (LPR) later in the month.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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