(Yicai Global) March 16 -- The People's Bank of China injected CNY100 billion (USD14.3 billion) into the nation's monetary system today via its medium-term lending facility, in order to help prop up the domestic economy as Covid-19 continues to spread worldwide.
The one-year loans carry an interest rate of 3.15 percent, the same as the last time the central bank issued MLF loans, PBOC said online today.
The central bank set up MLFs in 2014 to provide liquidity support for certain commercial banks focused on economic activity in small cities and rural areas.
PBOC's targeted required reserve ratio cut for eligible commercial banks also takes effect today, freeing up CNY550 billion (USD78.8 billion) in long-term funds for businesses hit by the novel coronavirus. The central bank unveiled the RRR cut on March 13. It will trim the ratio by between 0.5 percentage point to 1 percentage point for all banks, and an additional 1 point for certain joint-stock commercial banks.