SHANGHAISINGAPORE, Sept 15 Reuters China39;s central bank rolled over maturing mediumterm policy loans while keeping the interest rate on them unchanged on Friday, boosting liquidity after a similar move the previous day.

Market participants believe that a weakening Chinese yuan has constrained the central bank39;s efforts to aggressively lower interest rates after two reductions to the mediumterm policy rate since June. Authorities may instead ramp up liquidity to support the economic recovery.

The People39;s Bank of China PBOC said it was keeping the rate on 591 billion yuan 81.2 billion worth of oneyear mediumterm lending facility MLF loans to some financial institutions unchanged at 2.50 from the previous operation.

Friday39;s decision was intended to keep banking system liquidity reasonably ample and quarterend cash conditions stable, the PBOC said in an online statement.

All 33 market watchers polled by Reuters this week predicted no change to the MLF rate.

On Thursday, the PBOC took a similar step to boost liquidity in the financial system, announcing that it would cut the amount of cash that banks must hold as reserves, after lowering key policy rates last month to aid the economic recovery.

With 400 billion yuan worth of MLF loans set to expire this month, the operation resulted in a net 191 billion yuan of fresh fund injections into the banking system.

The PBOC39;s decision on Thursday to cut reserve requirement ratio RRR has effectively ruled out an…