Reuters, Shanghai, July 1-The People’s Bank of China announced on Thursday that in order to meet the temporary liquidity needs of financial institutions, the Standing Lending Facility (SLF) operation totaled 8.55 billion yuan in June, which nearly tripled the month-on-month ratio and hit five Month high. The balance at the end of the period was also 8.55 billion yuan. Based on this calculation, the SLF operations in June were all carried out at the end of the month to help maintain the stability of the funds at the end of the six months.
SLF operations in June include 300 million yuan overnight, 3.75 billion yuan for seven days, and 4.5 billion yuan for one month.
The central bank’s announcement also pointed out that the standing lending facility interest rate has played the role of the upper limit of the interest rate corridor, which is conducive to maintaining the smooth operation of money market interest rates. The current overnight, seven-day and one-month SLF interest rates are still 3.05%, 3.2% and 3.55%.
Regarding PSL, the China Development Bank, Export-Import Bank, and Agricultural Development Bank repaid 44 billion yuan in mortgage supplementary loans in June. This is the fifth consecutive month of net return of PSL by the three major policy banks, with a PSL balance of 3.092.6 billion yuan at the end of the period.
The central bank also stated that in June, the medium-term lending facility (MLF) operations carried out by financial institutions totaled 200 billion yuan, with a one-year term and an interest rate of 2.95%, and the ending MLF balance remained at 5.400 billion yuan.
On the first trading day of July, the scale of reverse repurchase operations in the open market of the People’s Bank of China immediately returned to 10 billion yuan. In response to the reverse repurchase operation that increased to 30 billion yuan at the end of the six-month period, it ended with a “five-day tour”. This change did not exceed market expectations. Without the constraints of month-end factors, the inter-bank market repurchase interest rate plunged, and funds returned to easing.
In May, the Standing Lending Facility (SLF) operation was carried out for a total of 3 billion yuan, all with a seven-day period. (Finish)
Bidding at press time; reviewer Zhang Xiliang
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