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PBoC delays medium-term lending facility operations

Postponement to later in the month aligns with bank’s plan to diminish MLF’s role as key policy rate

IFF China 2020 4-03

China’s central bank announced today (August 15) that it would provide liquidity to lenders via its one-year medium-term lending (MLF) facility later this month – a rare delay that comes amid an overhaul of its policy toolkit.

In a statement, the People’s Bank of China (PBoC) said it would renew MLF loans that are set to expire today on August 26.

The bank also announced that it had conducted a 577.7 billion yuan ($81 billion) seven-day reverse repurchase operation today. The aim, it said, was to

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