Via Caixin:
China’s central bank took another step to lower borrowing costs on Tuesday to encourage lending amid growing downward pressure on the economy, implementing a small cut in the interest rate on the medium-term lending facility (MLF), a key reference used by banks to price their loans.
The People’s Bank of China (PBOC) reduced the interest rate on the one-year MLF by 5 basis points to 3.25%, the first cut since the interbank market instrument was introduced in 2016, it said (link in Chinese) on its website. The central bank simultaneously announced it had handed out 400 billion yuan ($56.83 billion) to banks in one-year MLF loans, the first use of the facility since Oct. 16, to roll over 403 billion yuan of maturing debt.
