China injects $101 billion to ease liquidity, holds interest rate

China’s central bank supplied liquidity to commercial lenders on Monday to help them manage upcoming government bond sales, while leaving the price of the money unchanged as the economy recovers.
 

The People’s Bank of China (PBoC) added 700 billion yuan ($101 billion) of one-year funding via the medium-term lending facility.

The central bank said Friday that today’s operation is meant to offset the 400 billion yuan in loans coming due Monday and another 150 billion yuan maturing on August 26.
 

With the economy recovering slowly, the PBoC is trying to provide markets enough funding to purchase government bonds and