PBOC raised SLF interest rates in March

China’s central bank out with a lending report for March 2 April

The PBOC have confirmed they increased rates on Standard Lending Facility short-term loans by 5bps on 22 March, the day they raised another key rate.

O/n loans were raised to 3.4%, 7-day to 3.55% and 1 month to 3.9%. The moves followed the US Fed’s decision to raise rates by 0.25% on 21 March

The market had thought this to be the case but now we have it from the horse’s mouth.

• PBOC lent  32.24bln yuan 1mth and 21.72bln yuan 7 day period.
• outstanding SLF end-March 48.21bln yuan vs 21.34bln end-Feb
• PBOC raised a total of 54.06bln yuan via SLF

Lending notably higher in March.

      ” Get much of that SLF in March? ” ” No. Just keep that bamboo coming”