PBOC kept its key MLF policy interest rate unchanged on Friday

The People’s Bank of China injected 150 billion yuan of liquidity via its medium-term lending facility, rate unchanged at 2.85%. 150 bn of MLF matured today so its a net neutralalso injected CNY10 billion through seven-day reverse repurchase agreements with a borrowing cost of 2.1%, also an unchanged  rate.

Analysts are anticipating the PBOC will lower its key policy rates. China’s benchmark lending rate, the loan prime rate,  is priced based on the MLF interest rate. The next setting for the 1 and 5 year LPRs is scheduled for the 20th April.