Beijing, 3 Mar (ZXS) -- The People's Bank of China announced on 15 March that in order to maintain the reasonable and sufficient liquidity of the banking system, the central bank launched a medium-term lending facility (MLF) operation of 15 billion yuan (RMB, the same below) and a reverse repurchase operation of 4810 billion yuan in the open market on the same day, fully meeting the needs of financial institutions.
Considering that 2000 billion yuan of MLF is due, the central bank achieved a net investment of 2810 billion yuan through MLF this month. The winning interest rate of this MLF is 2.75%, which has remained unchanged for eight consecutive months.
Zhou Maohua, macro researcher of the financial market department of China Everbright Bank, told the China News Agency reporter that the central bank's "volume increase price flat" continuation MLF this month is in line with market expectations, mainly because the central bank moderately increases long-term capital investment, continues to support financial institutions to increase support for small and micro enterprises and other weak links of the real economy, manufacturing and other key emerging areas, stimulate the vitality of micro subjects, promote wide credit, and enhance the recovery momentum of domestic demand. The recent increase in interbank certificate of deposit interest rates has also increased the attractiveness of MLF. MLF increment released positive and stable growth signals, which was positive for market sentiment.
At the same time, from the recent release of PMI (Manufacturing Purchasing Managers' Index) and financial data, the trend of domestic economic activity has recovered, the overall financing demand of the real economy sector is ideal, and the credit structure has continued to be optimized, reflecting that the current interest rate level is in a reasonable range.
Pang Ming, chief economist and director of research department of JLL Greater China, believes that the central bank's operation on the same day can not only supplement the long-term funds needed by banks to support the real economy, but also iron out the short-term disturbance to liquidity caused by the pre-issuance of special bonds, clarifying that liquidity will continue to maintain a reasonable and sufficient policy orientation.
He expects that the next prudent monetary policy will continue to maintain reasonable and abundant liquidity, continue to create a favorable environment for wide credit, continue to strongly and effectively support the real economy, especially key areas and weak links, and continue to create a suitable monetary and financial environment for economic stability and high-quality development. (End)