BEIJING, April 24 (Xinhua) -- China's central bank cut the interest rate of targeted medium-term lending facility (TMLF) to 2.95 percent on Friday, 20 basis points lower than the previous TMLF.
The People's Bank of China renewed 267.4 billion yuan in TMLF operations that came due Friday to maintain liquidity, with the new operation of 56.1 billion yuan.
Amid the overall downward trend in interest rates, the 20-basis-point cut was to coordinate with previous interest rate reduction of reverse repos and medium-term lending facility, said Wen Bin, a chief researcher with China Minsheng Bank. This time's fund injection shrank due to the fact that the market liquidity remained reasonable and sufficient thanks to former reserve requirement ratio cuts. The financial institutions' current demand for TMLF was weakened, Wen said.
Meanwhile, structural monetary policies such as reloans, rediscounts and targeted RRR have also replaced the role and effect of TMLF, according to the researcher. The PBOC is likely to keep the monetary policy flexible and appropriate, and keep the market's liquidity at a reasonable level through open market operations and other measures to effectively reduce the financing costs of the real economy, Wen noted.Large commercial banks, joint-stock banks and major city commercial banks that lend heavily to the real economy and meet macro prudent requirements can apply for the TMLF.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China to donate additional US$30mil to WHO for Covid-19BEIJING (Reuters): China is to donate an additional US$30 million to the World Health Organization (WHO) to support the global fight against Covid-19, Chinese Foreign Ministry spokesman Hua Chunying said on Thursday (April 23).
Read more »
Pompeo renews criticism of China over virus but welcome supplies | Malay MailWASHINGTON, April 22 — US Secretary of State Mike Pompeo hit out at Beijing again on Wednesday over the coronavirus outbreak and accused it of taking advantage of the pandemic to bully neighbours, even as he welcomed China’s provision of essential medical supplies. Pompeo told a news briefing...
Read more »
China plans to boost state reserves with US crops amid virus pandemicBulk of the crops would be imports from the United States, as part of China's Phase 1 commitments.
Read more »
Leading group in China calls for improved Covid-19 testingBEIJING (China Daily/Asia News Network): A meeting presided over by Premier Li Keqiang on Wednesday (April 22) called for quicker steps to improve testing methods for Covid-19 and expand their usage to enable more targeted containment efforts and the reopening of businesses.
Read more »
China buys crude as prices collapse, for its stockpileBEIJING (AP) — China, the world’s biggest energy consumer, is taking advantage of a plunge in global oil prices due to the coronavirus outbreak to build up its stockpiles of crude.
Read more »