The People’s Bank of China (PBoC) has beefed up its arsenal for dealing with market liquidity, China Securities Journal reported Thursday, citing the central bank website. The standing lending facility makes mortgage-backed three-month loans to banks, helping boost short-term liquidity. The PBoC is unlikely to lower the reserve requirement ratio or the benchmark interest rates, meaning liquidity tightness could persist for the remainder of the year, analysts were quoted as saying. The lending facility had outstanding balances of 416 billion yuan (US$68.27 billion), 396 billion yuan, 410 billion yuan and 386 billion yuan from June to September, respectively, central bank data shows.
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