Sources Say MLF Sequel Coming

21st CBH: 消息称央行今续作约2800亿元到期MLF
A source close to the central bank, told the Securities Times reporter, now more concentrated purchase of new shares, the Spring Festival approaching, if you do not continue to add liquidity, market liquidity may not be enough. He said: "At present, there is no reason not to make a sequel ah!"

From December: Cash crunch fans expectation on RRR cut
"But even if without the new share subscription, the monetary market will still suffer as the 500-billion-yuan MLF conducted by the People's Bank of China (PBOC) three months ago will become due soon," Chen Long, analyst with Bank of Dongguan said.

The MLF is believed to have something to do with the reluctance of large state-owned banks to lend in the interbank market.

Earlier: Chinese Central Bank Confirms New Liquidity Tool as It Holds Off on Easing
The People’s Bank of China confirmed it pumped 769.5 billion yuan ($126 billion) into the country’s lenders in the last two months through a newly-created Medium-term Lending Facility. The PBOC injected 500 billion yuan in September and another 269.5 billion yuan in October via the facility -- all termed at three months with an interest rate of 3.5 percent.

The announcement, included in the PBOC’s quarterly monetary policy statement, is the first official confirmation of earlier reports on the injections. The facility is the latest unconventional liquidity tool as the PBOC joins the European Central Bank on a path of easing even as the U.S. begins the shift to a more normal monetary policy.

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