PBOC injects CNY800 billion via one-year MLF at 2.95%

The People’s Bank of China (PBOC) injected CNY800 billion via one-year medium-term lending (MLF) facility on Monday.

The Chinese central bank conducted the one-year MLF operation at 2.95%, unchanged from the previous operation. The PBOC kept the rates unchanged for the sixth time in a row.

The injection offsets the CNY600 billion maturities for this month.

Market reaction

USD/CNY is under heavy selling pressure amid broad US dollar weakness, as the Chinese currency shrugs-off the latest PBOC operation. The spot trades 0.35% lower at 6.5813, at the time of writing.

Meanwhile, the AUD/USD pair is looking to regain 0.7300 amid a risk-on market profile, reflected by the 0.80% gain in the S&P 500 futures.