China's central bank cuts SLF interest rates for local branches
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China's central bank said Thursday it will cut the interest rates on standing lending facility (SLF), a liquidity support tool, for its local branches.

The interest rates of overnight and seven-day SLFs for local financial institutions will be reduced to 2.75 percent and 3.25 percent respectively from Friday, the People's Bank of China (PBOC) announced.

SLF is a tool created by the PBOC in early 2013 to provide a large amount of funding to banks when they face a liquidity squeeze and are unable to get sufficient financing from the interbank market.

Early this year, the PBOC authorized its branches across the country to conduct SLFs and offer short-term liquidity to qualified small- and medium-sized banks.

Thursday's move is aimed at helping make interest rates more market-based and is in line with the current liquidity situation, the PBOC said on its official micro-blog.

Previous SLF interest rate levels were not announced. The PBOC has not conducted any SLF since April, after pumping 335 billion yuan of liquidity into banks in the first quarter of this year.

Author： 　　　Source：xinhua　　　 Editor：Yang Fan