(Bloomberg) -- China's central bank added to its growing list of measures aimed at countering the economic fallout from the spreading virus, injecting $14.3 billion into the financial system.
The People's Bank of China added 100 billion yuan into the banking system via the one-year medium-term lending facility, keeping the rate unchanged at 3.15%. There were no loans coming due Monday. The central bank refrained from injecting liquidity with short-term reverse repurchase agreements for a 20th straight day.
The move follows the PBOC's widely-expected announcement late Friday that it will trim the amount of cash some lenders must hold in reserve. The cut, which is also effective from Monday, will free up about 550 billion yuan of liquidity into the financial system.
Policymakers around the world are taking steps to shore up confidence in financial markets, which are undergoing a sell-off in many ways unseen seen since the global financial crisis in 2008. In the U.S., the Federal Reserve slashed its main rate to zero on Sunday, matching a record low it was last at in 2015. Central banks in Asia and Europe have also stepped up measures in a bid to keep markets functioning and economies growing.
The Chinese economy is under pressure from the fatal virus which has taken thousands of lives and forced a shutdown of many of its major cities -- factory data for February showed the steepest contraction on record. Measures deployed since early February had initially helped stabilize the country's markets. But with the coronavirus outbreak spreading across continents, China has less control should it derail global growth.
To contact the reporter on this story: Tian Chen in Hong Kong at tchen259@bloomberg.net
To contact the editor responsible for this story: Sofia Horta e Costa at shortaecosta@bloomberg.net
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