China's central bank, the People's Bank of China (PBOC), conducted a medium-term lending facility (MLF) operation on Friday, offering 200 billion yuan ($27.46 billion) in one-year loans to financial institutions. The interest rate remained unchanged at 2.00%, according to the bank's official statement.
This operation aimed to maintain "reasonably ample liquidity" within the banking system. The PBOC also disclosed that the bid rates for the loans ranged between 1.80% and 2.20%.
The timing of this loan issuance aligns with the expiration of a significant 995 billion yuan batch of MLF loans this month. Analysts have noted that the PBOC's decision to keep the interest rate steady reflects its focus on supporting the economy while managing inflationary pressures.
The unchanged rate aligns with market expectations and suggests that the central bank is prioritizing stability amid ongoing efforts to bolster economic growth. By ensuring sufficient liquidity in the financial system, the PBOC aims to sustain lending activities and support recovery momentum.
The central bank's actions are being closely monitored by global markets as they could signal the direction of monetary policy in one of the world's largest economies. As China grapples with domestic and international economic challenges, the PBOC's measures remain a critical focus for investors and policymakers alike.
This latest MLF operation highlights the bank's commitment to striking a balance between stimulating growth and maintaining financial stability, further reinforcing its cautious approach to monetary policy.


U.S.–Venezuela Relations Show Signs of Thaw as Top Envoy Visits Caracas
EU Recovery Fund Faces Bottlenecks Despite Driving Digital and Green Projects
China Factory Activity Slips in January as Weak Demand Weighs on Growth Outlook
Asian Markets Slide as Silver Volatility, Earnings Season, and Central Bank Meetings Rattle Investors
India Budget 2026: Modi Government Eyes Reforms Amid Global Uncertainty and Fiscal Pressures
Why Trump’s new pick for Fed chair hit gold and silver markets – for good reasons
China Manufacturing PMI Slips Into Contraction in January as Weak Demand Pressures Economy
Dollar Holds Firm as Markets Weigh Warsh-Led Fed and Yen Weakness Ahead of Japan Election
South Korea Factory Activity Hits 18-Month High as Export Demand Surges
China Home Prices Rise in January as Government Signals Stronger Support for Property Market
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S.
Wall Street Slides as Warsh Fed Nomination, Hot Inflation, and Precious Metals Rout Shake Markets
Starmer’s China Visit Highlights Western Balancing Act Amid U.S.-China Rivalry
JPMorgan Lifts Gold Price Forecast to $6,300 by End-2026 on Strong Central Bank and Investor Demand
Gold Prices Stabilize in Asian Trade After Sharp Weekly Losses Amid Fed Uncertainty
U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal 



