Exceeding market expectations, the central bank adjusted the medium – and short-term policy interest rates simultaneously< Br > < div class = "height" > < / div > on August 15, in order to maintain the reasonable and sufficient liquidity of the banking system, the central bank launched a 400 billion yuan medium-term loan facility (MLF) operation (including the continuation of the MLF due on August 16) and a 2 billion yuan open market reverse repurchase operation, which fully met the needs of financial institutions. The bid winning interest rates of medium-term loan facility (MLF) operation and open market reverse repurchase operation were 2.75% and 2.0% respectively, both of which were 10 basis points lower than the previous period< Br > < div class = "height" > < / div > this is the open market operation 7-day reverse repo interest rate as the central bank’s short-term policy interest rate and the 1-year MLF interest rate representing the marginal capital cost of the banking system to obtain medium-term base currency from the central bank. After January 17, this year, it was lowered again year on year< Br > < div class = "height" > < / div > at the same time, from the perspective of maturity, the maturity scale of MLF in August was 600 billion. Therefore, the central bank continued to make “spicy powder” by “reducing the amount and reducing the price” this month. Since April, the central bank has continued the “equivalent amount” operation in the MLF operation in the middle of the month for four consecutive months< Br > < div class = "height" > < / div > “as the funds have been kept loose for several months and the interest rate of funds has remained low, the MLF interest rate is significantly higher than the interest rate of inter-bank certificates of deposit in the same period. If the MLF interest rate is not adjusted, the bank will definitely not be willing to declare.” According to a person from the financial market department of a joint-stock bank, on the other hand, the financial data in July showed that the financing demand of the real economy was very weak, and the reduction of MLF interest rate also provided the possibility for the subsequent LPR reduction.