China Partially Rolls Over Policy Loans After Reserve Ratio Cut

(Bloomberg) — China rolled over part of the policy loans coming due this month as the central bank seeks to sustain its support for the economy after cutting the reserve-requirement ratio last week.

The People’s Bank of China injected 500 billion yuan ($78.5 billion) of one-year cash into the financial system, partially offsetting the 950 billion yuan coming due on Wednesday. It kept the interest rate on the loans unchanged at 2.95% for a 20th month. Attention now switches to the PBOC’s review of the loan prime rates next week, the de facto benchmark for new loans.