China-Singapore Jingwei Client, May 17 According to the official website of the central bank, in order to maintain a reasonable and sufficient liquidity in the banking system, the People’s Bank of China launched a 100 billion yuan mid-term loan facility (MLF) operation on May 17 (including the MLF on May 17). Continuation of the period) and 10 billion yuan reverse repurchase operations.

  Source: Central Bank's official website

  Specifically, the central bank's MLF operation on the 17th is a one-year period, and the winning interest rate is 2.95%, which is the same as before.

The 10 billion yuan reverse repurchase operation takes 7 days, and the winning bid rate is 2.20%, which is the same as before.

  Wind data shows that on the 17th, 20 billion yuan of reverse repurchase and 100 billion yuan of MLF expired, and a net return of 10 billion yuan on that day.

  Zhou Maohua, an analyst at the Financial Markets Department of Everbright Bank, pointed out in an interview with the Sino-Singapore Jingwei client that the central bank will continue to produce MLF at equal prices, and a small amount of net return of tens of billions of dollars in reverse repurchase in 7 days will release the central bank’s monetary policy stabilization. Market funds are stable, liquidity is reasonable and abundant, market expectations are stable, and the central bank mainly waits and sees in the short term; it is expected that the central bank will continue to use a variety of market tools to flexibly hedge short-term financial disturbance factors.

  Zhou Maohua also said that the central bank’s MLF interest rate continues to remain stable, mainly due to the recent financial data showing that the real economy’s financing demand remains strong, indicating that the current interest rate level is reasonable and appropriate. At the same time, it also indicates that the LPR market quoted interest rate this month will continue to hold high probability.

(Zhongxin Jingwei APP)