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The People’s Bank of China (PBOC) extended one-year loans through its medium-term lending facility (MLF) on Wednesday by injecting CNY100 billion at a reduced lending rate unchanged of 2.95%. 

The lending rate on one-year MLF was cut to 2.95% from 3.15% previous, the lowest rate ever for an MLF operation.

Markets were expecting the MLF rate cut to be announced on Friday but the liquidity crunch due to the coronavirus outbreak may have prompted the central bank to act earlier.