SHANGHAI (Reuters) – China’s central bank is expected to use its medium-term lending facility one more time in the middle of this month, the Financial News, a paper run by the central bank said on Wednesday.
The People’s Bank of China (PBOC) is also likely to inject funds via 28-day reverse repos and use its temporary liquidity facility ahead of Lunar New Year in 2018 as it did this year, according to the paper.
It estimated that the central bank would inject a total of around 300 billion yuan of long-term funds into the market, along with around one trillion yuan of fiscal expenditure at the year-end, to help stabilise cash conditions.
On Wednesday, the PBOC injected 188 billion yuan into the financial system via one-year MLF loans, with rates unchanged.
Reporting by Winni Zhou and John Ruwitch; Editing by Sam Holmes