China central bank queries banks on medium-term lending facility demand, cuts MLF rates: sources

[SHANGHAI] China's central bank queried selected banks on their demand for liquidity under its medium-term lending facility, multiple sources with direct knowledge told Reuters on Wednesday.

The bank also cut the rates on offer by 25 basis points to 2.5 per cent for three month loans, 2.6 per cent for six month loans and 2.75 per cent for one year loans, sources said.

The medium-term lending facility is a supplementary lending facility sometimes used by the central bank to adjust liquidity in the banking system.

The People's Bank of China did not have an immediate comment when contacted by Reuters.

REUTERS