China Steps Up Support for Economy by Adding One-Year Funds

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The PBOC’s latest moves indicate Beijing’s intention to accelerate the speed of recovery of the world’s second-largest economy. Photo: Bloomberg

(Bloomberg) — China’s central bank added cash into markets via a key policy loan for the 10th consecutive month, a day after it announced another cut to lenders’ reserve requirements to aid a struggling economy.

The People’s Bank of China offered 591 billion yuan ($81.2 billion) via the so-called medium-term lending facility (MLF) Friday, resulting in a 191 billion yuan net injection. The central bank kept the rate on the MLF loan unchanged at 2.5%, after a surprise 15-basis-point cut last month.