China central bank cuts interest rate on TMLF by 20 basis points

China’s central bank cut the interest rate on its targeted medium-term lending facility (TMLF) on Friday, following similar reductions to borrowing costs on other liquidity tools in the past few weeks to support the economy, reported Reuters.

The People’s Bank of China (PBOC) said the one-year interest rate on the TMLF was lowered by 20 basis points to 2.95% from 3.15% in the previous operation.

In the same statement, the central bank said it injected RMB 56.1 billion ($7.93 billion) on Friday, when a batch of RMB 267.4 billion of such loans was due to expire. The TMLF will mature in one year but the banks will be allowed to roll it over for two more years.