PBoC withdraws liquidity and holds key rate

Policy-makers refrain from easing despite weak inflation and exports data

The People’s Bank of China
The People's Bank of China

The People’s Bank of China (PBoC) withdrew liquidity from the banking system and left a key policy rate unchanged today (April 15), despite low inflation and weak demand.

The PBoC offered 100 billion yuan ($13.82 billion) of one-year medium-term facility (MLF) loans to financial institutions at a rate of 2.5%, the central bank said in a statement. With 170 billion yuan worth of MLF loans set to expire this month, the operation resulted in a net 70 billion yuan of fund withdrawal from the banking

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