China Injects Another $22B Stimulus Shot into Economy

China’s central bank injected 140 billion yuan ($21.96 billion) into banks through its short-term lending operations (SLO) tool on Monday, according to a statement published on the central bank website.

The interest rate on the 6-day day lines of credit will be 2.35 percent, the same as last Friday’s SLO, the bank said.

Last week the central bank injected a total of 280 billion yuan ($43.92 billion) through two separate SLOs.

The People’s Bank of China launched SLOs in 2013 to supplement its other monetary policy tools. The facility is mainly used to provide one- to three-day direct lines of credit to commercial banks, though loans with other maturities are occasionally used.

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza