PBOC cuts interest rates for standing lending facility loans in April

In its first-quarter monetary policy report published on Sunday, the People’s Bank of China (PBOC) said it lowered interest rates on its standing lending facility (SLF) in April.

The Chinese central bank cut SLF rates by 30 basis points on April 10, bringing borrowing costs on overnight, seven-day and one-month loans to 3.05%, 3.2%, 3.55%, respectively.

The PBOC said the SLF rate serves as the ceiling of its interest rate corridor and offers short-term liquidity support based on financial institutions' demand.

“SLF loans have a shorter maturity and differs from the MLF, which the PBOC uses to manage longer-term liquidity in the banking system and guides the lending benchmark loan prime rate (LPR),” per Reuters.