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China’s central bank kept its key policy rate unchanged on Thursday, a move that could put benchmark lending rates this month on hold after a cut in August.
The People’s Bank of China held the one-year interest rate of its medium-term lending facility at 2.75%, while injecting 400 billion yuan ($57.45 billion) of liquidity via the financial tool.
A total of CNY600 billion in MLF loans expired on Thursday, according to data from provider Wind.
The PBOC also injected CNY2 billion worth of liquidity via seven-day reverse repurchase agreements.
The central bank lowered the MLF and reverse repo rates in August, which led to lower benchmark loan prime rates to reduce financing costs for businesses and individuals.
The lack of MLF rate adjustment on Thursday may mean that the LPR will also stay unchanged this month. The PBOC is due to announce the benchmark LPR next Tuesday.
