China Bolsters Liquidity Support to Meet Surge in Loan Demand

(Bloomberg) — China’s central bank added more cash into the financial system to meet a rapid rebound in loan demand after the end of “zero Covid,” while keeping its key policy rate steady for now as the economic recovery takes shape.

The People’s Bank of China (PBOC) injected a net 199 billion yuan ($29.1 billion) through its one-year medium-term lending facility (MLF) this month, broadly in line with the 200 billion yuan median forecast of economists surveyed by Bloomberg. The MLF borrowing rate was left unchanged at 2.75% on Wednesday, as expected by the majority of analysts in the survey.