PBOC raises rates on SLF loans

The People’s Bank of China (PBOC) increased the rate for overnight Standing Lending Facility (SLF) loans by 0.2 percentage points to 3.3% effective from March 16. The central bank raised the rate for 7-day loans to 3.45% and the 1-month rate to 3.8%.

The SLF rates are aimed mainly at small- and medium-sized financial institutions. Bloomberg report says, “SLF is similar to the Federal Reserve’s discount window and the European Central Bank’s Marginal Lending Facility.”