China Pumps $25 Billion in Funds to Banks While Keeping Key Rate on Hold

(Bloomberg) — China injected the least amount of medium-term cash into the banking system since November, a sign that policymakers are watching the effects of past easing steps as the nation’s economic recovery appears to be on track.

The People’s Bank of China (PBOC) offered 170 billion yuan ($25 billion) of funds to banks through the medium-term lending facility. That resulted in a 20 billion yuan net injection in April, the smallest since November. It also left the interest rate unchanged at 2.75%, the eighth month for it to stand pat, as expected by a majority of economists and analysts in a Bloomberg survey.