March 16, 2020 / 2:01 AM / 21 days ago

China surprisingly keeps MLF rate unchanged despite emergency U.S. rate cut

SHANGHAI, March 16 (Reuters) - China’s central bank left borrowing cost on its medium term loans unchanged on Monday, despite another U.S. emergency rate cut of 100 basis points made hours earlier to counteract economic shock from a coronavirus outbreak.

The People’s Bank of China (PBOC) said it was keeping the rate of one-year medium-term lending facility (MLF) loans to financial institutions unchanged at 3.15%.

Monday’s move is expected to offer an indication for the country’s monthly benchmark loan prime rate (LPR) fixing, which is due to announce on Friday.

The PBOC also said in the statement that it injected 100 billion yuan ($14.29 billion) into financial institutions on Monday. ($1 = 6.9975 Chinese yuan) (Reporting by Winni Zhou and Andrew Galbraith in Shanghai, Huizhong Wu in Beijing; Editing by Himani Sarkar)

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