As the Economy Struggles, the PBOC Offers a Record $112 Billion in Cash

China’s central bank attempted to prop up an economy beset by a housing collapse and feeble demand by pumping in the most money through one-year policy loans on record.

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Through its medium-term lending facility, the People’s Bank of China extended an offer to commercial lenders of 1.45 trillion yuan ($204 billion)

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As the MLF injection was substantially greater than anticipated, “it suggests continued easy monetary policy

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This means China won’t be lowering the reserve-requirement ratio for banks anytime soon.

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The remaining funds may be utilised to support loan extensions, according to Frances Cheung, a rates strategist at Oversea-Chinese Banking Corp.

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The injections are more than enough to cover additional bond supply.

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