China injects funds through MLFs, raises MLF & RR rates

PBOC says its raised rates, but by less than the market expected

• China raises 7-day reverse repo rate by 5 basis points to 2.50 percent
• Raises one-year MLF interest rate by 5 basis points to 3.25 percent
• People's Bank of China injects 288 bln yuan through 1-year MLF

PBOC says injected funds via MLF and reverse repos to meet seasonal liquidity demand at financial institutions

• says upward adjustment of interest rates reflects supply and demand in the market
• says rate rise is a normal market reaction to Fed's rate increase

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MLF is the 'medium term lending facility'

more to come from China: Heads up for China data due at the top of the hour