"spicy powder" refers to the medium-term lending facility, the English name is medium-term lending facility, or MLF for short, which is spelled as "spicy powder" according to the Chinese initials. The same naming method is "SLF" hot and sour powder, which is convenient for standing loan and convenient for standing loan; "TLF" super spicy powder, temporary liquidity, convenient temporary liquidity.
Related introduction:
Medium-term loan facilitation MLF is a new measure, which confirms the market's speculation on medium-term credit financing tools.
Compared with the Standing Loan Facility (SLF), the medium-term loan facility is not clear, but the medium-term liquidity management tool can stabilize everyone's expectations. Creating medium-term lending facilities can not only meet the current requirements of the central bank to stabilize interest rates, but also not directly put the base currency into the market. This is a satisfactory solution.
The medium-term lending facility reflects the adjustment of the basic principles of China's monetary policy, namely, maintaining pressure, directional regulation, structural adjustment, pre-adjustment and fine-tuning.
Medium-term lending facility is a monetary policy tool for the central bank to provide medium-term base money. Medium-term lending facilities have an impact on financial institutions' balance sheets and market expectations by adjusting medium-term financing costs.
So as to guide financial institutions to provide low-cost funds in line with national policies to the real economy sector and promote the reduction of social financing costs.