China's Central Bank Injects $14.8B, Largest MLF Operation in 5 Months
The People’s Bank of China injected $14.8 billion via its one-year MLF, the largest such operation in five months, alongside earlier reverse repos totaling $103.3 billion, bringing total liquidity support to its highest since February.
The People’s Bank of China conducted a one-year Medium-Term Lending Facility (MLF) operation this month, injecting $14.8 billion into the banking system. This marks the largest single MLF injection in five months.
Earlier in the month, the central bank added $103.3 billion through reverse repurchase agreements. Combined, total liquidity support surged to its highest level since February.
The stepped-up liquidity measures follow four consecutive months of declining system liquidity. They come after weaker-than-expected second-quarter economic data and ahead of a record schedule of government bond issuance in the third quarter.
Source: The Kobeissi Letter