SHANGHAISINGAPORE, May 15 Reuters China39;s central bank left a key policy rate unchanged when rolling over maturing mediumterm lending facility MLF loans on Wednesday, in line with market expectations.

WHY IT39;S IMPORTANT

The steady MLF rate shows the central bank39;s focus on keeping currency stability, analysts say, even as an unexpected credit contraction in April added to the case for more policy stimulus to prop up the world39;s secondlargest economy.

The MLF loan operation also comes days ahead of the finance ministry39;s scheduled sales of the first batch of 1 trillion yuan in ultra longterm special treasury bonds.

BY THE NUMBERS

The People39;s Bank of China PBOC said it was keeping the rate on 125 billion yuan 17.28 billion in oneyear MLF loans to some financial institutions unchanged at 2.50 from the previous operation.

In a Reuters survey of 32 market watchers, 84 of respondents expected the PBOC to leave the interest rate on MLF rate unchanged.

CONTEXT

China39;s yuan has lost about 1.9 against a resurgent U.S. dollar so far this year, pressured by its relatively low yields versus other economies.

Beijing will step up support for the economy with monetary and fiscal policies, including cuts in interest rates and bank reserve requirement ratios RRR, the Communist Party39;s Politburo said in late April.

KEY QUOTES

Recent data with low inflation, credit contraction, slowing money supply growth, and weak private sector investment present a strong case…