World News

China central bank will conduct MLF operations on Wednesday: sources

BEIJING/SHANGHAI (Reuters) – China’s central bank will conduct medium-term lending facility (MLF) operations on Wednesday, two traders with direct knowledge of the matter said.

There is no MLF loan due to expire on the day.

Markets will closely assess the size and interest rate on the fresh MLF loan injection for the People’s Bank of China’s (PBOC) monetary policy stance.

The MLF now acts as a guide for the PBOC’s new lending benchmark Loan Prime Rate (LPR).

The one-year MLF rate <CNMLF1YRRP=PBOC> now stands at 3.25%.

(Reporting by Hou Xiangming in Beijing and Andrew Galbraith in Shanghai, Writing by Winni Zhou; Editing by Shri Navaratnam)