China’s central bank confirmed it had injected RMB769.5 billion (US$126 billion) into the country’s lenders through a new Medium-term Lending Facility in the last two months, Bloomberg reported, citing the PBoC’s latest quarterly policy statement. The announcement is the first official confirmation of earlier reports on the latest injection as well as another of RMB500 billion in September and one in October of RMB269.5 billion. All were termed at three months, with an interest rate of 3.5%. Guan Qingyou, chief macroeconomic researcher with Minsheng Securities, said the move “shows the central bank is very reluctant to loosen monetary policy, but it has to reduce financing costs for end borrowers”.
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