China’s central bank keeps key policy rates unchanged

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China’s central bank kept its key policy rates unchanged on Wednesday, suggesting a hold on benchmark lending rates later this month.

The People’s Bank of China injected 481 billion yuan ($70 billion) worth of liquidity into the banking system via its one-year medium-term lending facility at an interest rate of 2.75%. The MLF interest rate, which is used to price the nation’s benchmark loan prime rate, was the same as the previous operation.

The PBOC also injected CNY104 billion of funds via seven-day reverse repurchase agreements at an unchanged interest rate of 2.00%.

PBOC Vice Gov. Liu Guoqiang said earlier this month that the central bank would avoid tightening or easing monetary policies dramatically.

Analysts say China’s sooner-than-expected economic recovery after the country’s reopening has reduced the likelihood of massive monetary easing.

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