SHANGHAI, Aug 26 (Reuters) - China’s central bank kept the interest rate on its medium-term lending facility (MLF) unchanged on Monday, just a week after slightly lowering a new lending benchmark rate for bank loans designed to reduce borrowing costs.
The People’s Bank of China (PBOC) said on its website the interest rate on one-year MLF loans remained at 3.3%, the same as the previous operations.
The PBOC also said it has injected 150 billion yuan ($21.15 billion) to financial institutions via the liquidity tool. On Monday, a batch of 149 billion yuan worth of one-year MLF loans was due to mature.
In the same statement, the PBOC also said it has skipped reverse repo operations on Monday, when 20 billion yuan worth of such liquidity tool is set to expire.
China uses monetary tools such as MLF, which reflects commercial banks’ long-term liability cost, to manage medium-term liquidity in the banking system of the world’s second largest economy.
Global markets are closely watching for any further economic support measures from Beijing as a bruising trade war with the United States saps confidence, business profits and overall growth. ($1 = 7.0928 Chinese yuan) (Reporting by Winni Zhou and John Ruwtich; Editing by Richard Borsuk)