The PBOC released its Q2 2026 monetary policy implementation report, saying it
will conduct medium-term lending facility (MLF) operations as appropriate to
ensure medium- and long-term liquidity and will carry out standing lending
facility (SLF) operations in a timely manner. 1H MLF operations totaled 3.5 tln
yuan, all with one-year tenors; end-June MLF outstanding was 7.4 tln yuan, up
1.15 tln from the start of the year. MLF is conducted via fixed-quantity,
interest-rate bidding with multi-price allotment to better match institutions’
differing funding needs. 1H SLF operations totaled 4.9 bln yuan; end-June SLF
outstanding was 1.0 bln yuan. SLF provides on-demand, full short-term liquidity
support to local financial institutions to promote money-market stability.
End-June SLF rates were: overnight 2.25%, 7-day 2.40%, 1-month 2.75%.
