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PBOC injects liquidity via short-term tools in June, but less than May

Published 07/01/2016, 07:04 AM
Updated 07/01/2016, 07:10 AM
© Reuters. Woman walks past the headquarters of the PBOC in Beijing

BEIJING (Reuters) - China's central bank said on Friday it injected a total of 210.72 billion yuan ($31.7 billion) via short- and medium-term liquidity facilities in June to help support credit growth and the economy.

June liquidity injections, however, were down 27.5 percent from May, data showed.

The People's Bank of China (PBOC) said in a statement on its website it injected 208 billion yuan to financial institutions via its medium-term lending facility (MLF) in June.

The central bank lent 123.2 billion yuan for three months, 11.5 billion yuan for six months and 73.30 billion yuan for one year.

Interest rates for the MLF loans were unchanged at 2.75 percent for three-month loans, 2.85 percent for six-month loans and 3.0 percent for one-year loans, the central bank said.

The central bank also injected 2.72 billion yuan via its standing lending facility (SLF) in June.

Outstanding MLF was 1.75 trillion yuan at end-June compared with 1.64 trillion yuan at end-May, implying a net injection of 108 billion yuan last month.

Outstanding SLF stood at 2 billion yuan at the end of June, up from 400 million yuan at the end May, implying a net injection of 1.6 billion yuan.

The PBOC uses the MLF and the standing lending facility as tools for managing short- and medium-term liquidity in the country's banking system.

In June, the central bank made 171.9 billion yuan in loans to three policy banks via its pledged supplementary lending (PSL) facility, it said.

Outstanding PLS stood at 1.67 trillion yuan at the end of June, compared with 1.50 trillion yuan at the end of May, it said.

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