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Economy

China injects $29bn into banking system while holding rates flat

PBOC counts on lending to fuel growth with limited impact of cheaper mortgages

The People's Bank of China kept its benchmark lending rates unchanged for a sixth straight month on Feb. 20.   © Kyodo

BEIJING -- The People's Bank of China kept its benchmark lending rates unchanged for a sixth straight month Monday, focusing on injecting liquidity to bolster an economy hampered by a sluggish real estate market.

The one-year and over-five-year prime rates, the latter of which is used as a reference for mortgages, were left at 3.65% and 4.3%, respectively. But the central bank added a net 199 billion yuan ($28.9 billion) into the financial system through its medium-term lending facility for commercial banks this month, a third straight month of net increases.

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