The PBoC has kept the 1-year MLF interest rate unchanged at 2.5%, as expected. Injects 100bn yuan via a one year MLF. • 170bn yuan come due on Wednesday. • Net drain of 70bn yuan in MLF. - What is the MLF? The PBOC's MLF rate is a benchmark interest rate that banks in China can use to borrow funds from the People's Bank of China for a period of 6 months to 1 year, as medium-term liquidity to commercial banks. • The rate is typically announced on the 15th of each month. • The interest rate on the MLF loans is typically higher than the benchmark lending rate (more on these below), which encourages banks to use the ... (full story)