China central bank keeps medium-term policy rate unchanged, matching expectations

The Chinese national flag flutters in central Beijing.

China's central bank kept the interest rate unchanged on Friday as it rolled over maturing medium-term policy loans, matching market expectations, despite Beijing calling for more monetary stimulus to cushion an economic slowdown.

The People's Bank of China (PBOC) said it was keeping the rate on 150 billion yuan ($23.52 billion) worth of one-year medium-term lending facility (MLF) loans CNMLF1YRRP=PBOC to some financial institutions unchanged at 2.85% from the previous operation.

Thirty-one out of the 45 traders and analysts, or nearly 70% of all participants in a Reuters poll, forecast no change to the MLF rate.

With 150 billion yuan worth of MLF loans maturing on Friday, the operation resulted in zero net cash injection into the banking system.

The central bank also injected 10 billion yuan through seven-day reverse repos CN7DRRP=PBOC while keeping the borrowing cost unchanged at 2.1%, according to an online statement.