China's Central Bank Raises Rates On Standing Lending-facility Loans

By Rachel Koning Beals Markets MarketWatch Pulse

China's central bank raised interest rates for standing lending facility loans, it announced Saturday. These loans are aimed mainly at small- and medium-sized financial institutions. The People's Bank of China increased the rate for overnight SLF loans by 0.2 percentage points to 3.3 percent effective from March 16, it said in a statement on its website. The bank raised the rate for 7-day loans to 3.45 percent and the 1-month rate to 3.8 percent. The facility is comparable to the Federal Reserve's discount window and the European Central Bank's Marginal Lending Facility.

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