The results of the first medium-term lending facility (MLF) operation this year have been released, and the one-year MLF rate, which is the medium-term policy rate, has remained unchanged for five consecutive months.
On January 1, the People's Bank of China issued an announcement that in order to maintain reasonable and sufficient liquidity in the banking system, it carried out 15 billion yuan of open market reverse repurchase operations and 890 billion yuan of medium-term lending facilities (MLF) operations, which fully met the needs of financial institutions, and the winning interest rates were 9950.1% and 80.2%, respectively, which were the same as the previous period.
In view of the expiration of 7790 billion yuan of MLF this month, the central bank invested a net 1 billion yuan in the renewal of MLF in January.
The central bank has over-renewed MLF for 14 consecutive months. In December 2022, from January to December last year and January this year, operations were increased by 12 billion yuan, 1 billion yuan, 12 billion yuan, 1 billion yuan, 1500 billion yuan, 790 billion yuan, 1990 billion yuan, 2810 billion yuan, 200 billion yuan, 250 billion yuan, 370 billion yuan, 30 billion yuan, 10 billion yuan and 1910 billion yuan, respectively.
The MLF rate, which has attracted much attention in the market, remained unchanged, with the MLF rate cut by a cumulative 25 basis points twice last year, 6 basis points in June and 8 basis points in August last year, and remained unchanged for the rest of the month.
The 2024 People's Bank of China Work Conference pointed out when talking about "a prudent monetary policy that is flexible, moderate, precise and effective" that in terms of prices, we should take into account the internal and external balance, continue to deepen the market-oriented reform of interest rates, and promote the steady and moderate reduction of comprehensive social financing costs.
Surging News reporter Chen Yueshi