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China cuts interest rate of MLF

Xinhua | Updated: 2020-02-17 13:19
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China's central bank cut the interest rate of medium-term lending facility (MLF) to 3.15 percent on Monday, 10 basis points lower than the previous MLF. [Photo/Sipa]

BEIJING -- China's central bank cut the interest rate of medium-term lending facility (MLF) to 3.15 percent on Monday, 10 basis points lower than the previous MLF.

The People's Bank of China injected 200 billion yuan (about $28.66 billion) into the market via the MLF, with no MLF maturing Monday, according to the bank.

The MLF tool was introduced in 2014 to help commercial and policy banks maintain liquidity by allowing them to borrow from the central bank using securities as collateral.

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