China Pumps $25 Billion in Funds to Banks While Keeping Key Rate on Hold

 

• Net fund injection in April is smallest since November
• Central bank may be evaluating impact of its easing in March

China’s central bank is providing more liquidity to the financial system while keeping a key lending rate unchanged, as it moves to prevent funding squeezes stemming from rebounding credit demand.

The People’s Bank of China offered 170 billion yuan ($25 billion) of funds to banks through the medium-term lending facility. That resulted in a 20 billion yuan net injection in April, the smallest since November. It also left the interest rate unchanged at 2.75%, the eighth month for it to stand pat, as expected by a majority of economists and analysts in a Bloomberg survey.

https://www.bloomberg.com/news/articles/2023-04-17/china-pumps-in-more-liquidity-while-keeping-key-rate-on-hold