SHANGHAI (Reuters) – China’s central bank surprised financial markets on Thursday by keeping the interest rate on its targeted medium-term lending facility (TMLF).

The People’s Bank of China (PBOC) said on its website that it was keeping the rate on one-year TMLF loans at 3.15%, as it partially replaced loans maturing the same day.

It did not follow a reduction in the medium term liquidity tool (MLF) in November, as traders had expected.

The PBOC said it had injected 240.5 billion yuan ($34.83 billion) worth of TMLF loans to some commercial institutions, less than a 257.5 billion yuan batch of loans that were set to expire.

The TMLF will mature in one year but the banks will be allowed to roll it over for two more years.