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On [specific date], the People's Bank of China issued an announcement stating that, in order to maintain ample liquidity in the banking system, it conducted a billion-yuan Medium-term Lending Facility (MLF) operation on the same day. The operation had a maturity of one year, with the highest bid rate at .%, the lowest bid rate at .%, and the winning bid rate remaining at .%. Following this operation, the outstanding balance of the Medium-term Lending Facility reached billion yuan.

It is worth noting that, as operations worth billions of yuan matured during the month, this operation was a reduced rollover, with the actual scale of renewal being billions of yuan less than the matured amount. Regarding this, Wen Bin, Chief Economist at China Minsheng Bank, pointed out that since the beginning of this year, the People's Bank of China has maintained policy stability, generally tightening liquidity, and this reduced rollover at a flat rate was in line with expectations.

In fact, since last month, the People's Bank of China has been consistently rolling over loans with reduced amounts, and the current balance has dropped to around one trillion yuan. Wen Bin further noted that this change indicates that under the new monetary policy framework, the central bank is gradually diminishing its role, strengthening the policy attributes of the reverse repo rate, and optimizing the variety and maturity structure of the monetary policy toolbox to further enhance the flexibility and precision of regulation.

Wang Qing, Chief Macro Analyst at Dongfang Jincheng, similarly analyzed that this reduction in volume at a flat rate aligns with the recent operational pattern of the People's Bank of China, which involves conducting large-scale outright reverse repos for continuous replacement.

The reporter noted that on the same day, the People's Bank of China (PBOC) announced in another statement that in order to maintain ample liquidity in the banking system, it conducted a billion-yuan reverse repo operation on the [specific date missing in original text] at a fixed interest rate through quantity bidding. The winning bid rate was .%, unchanged from previous operations.

Looking ahead, both Wen Bin and Wang Qing believe that the People's Bank of China will employ a variety of monetary policy tools to maintain ample market liquidity. They noted that, going forward, the current balance remains relatively high, and the process of replacing it with new tools such as outright reverse repos and treasury bond purchases will continue.