Sun Guofeng of the People’s Bank of China: MLF and reverse repurchase winning rates are conducive to boosting market confidence, and reducing corporate loan interest rates through LPR transmission – yqqlm

Securities Times Net News, Sun Guofeng, Director of the Monetary Policy Department of the Central Bank, said at a press conference of the State Council Information Office on January 18 that the medium-term lending facility and open market reverse repurchase are operated by market-based bidding, and the winning interest rate is generated through bidding by participating institutions. , the level of interest rates depends on various factors such as the liquidity of the banking system, financial institutions’ demand for central bank funds, and market expectations. Since the beginning of this year, the People’s Bank of China has implemented the spirit of the Central Economic Work Conference, strengthened cross-cycle adjustment, and increased liquidity. Repurchase operations, increase liquidity supply, hedge in advance the impact of short-term factors such as the peak of the January tax period, accelerated issuance of government bonds, and cash injection before the Spring Festival, maintain reasonable and sufficient liquidity, and promote medium-term lending facilities and open market reverse repurchase winning rates , both fell by 10 basis points. Among them, the 1-year medium-term lending facility winning rate fell from 2.95% to 2.85%, and the 7-day open market reverse repurchase operation winning rate fell from 2.20% to 2.10%.

Sun Guofeng said that the drop in interest rates for the medium-term lending facility and open market operations reflects the proactive action of monetary policy and efforts to boost market confidence, reduce corporate loan interest rates through LPR transmission, and promote the decline in bond interest rates. The comprehensive financing cost of enterprises has been stable with some decline, which will help stimulate the financing needs of market players, enhance the stability of the growth of total credit, support the issuance of government bonds and local bonds, stabilize the overall economic market, and maintain a balance between internal and external balance.