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PBOC Conducts RMB700B Outright Reverse Repo; Analysts: Liquidity Injection May Continue to Ramp up
Recommend 15 Positive 2 Negative 16 |
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To maintain ample liquidity in the banking system, the People's Bank of China (PBOC) today (8th) conducted a RMB700 billion outright reverse repo operation through a fixed quantity, interest rate bidding, and multiple price bidding method, with a term of three months. Industry insiders judged that this operation may smooth out the fiscal tax payment peak and preemptively hedge against quarter-end liquidity pressure, according to the Securities Times. It is expected that the central bank will continue to use various monetary policy tools such as reverse repos, outright reverse repos, and Medium-term Lending Facility (MLF) to reinforce the regulation of short- and medium-term liquidity, maintain ample liquidity, and further implement a moderately loose monetary policy. The possibility of the PBOC injecting long-term liquidity into the market through timely reserve requirement ratio (RRR) cuts in the second half of the year cannot be ruled out, industry insiders said. AASTOCKS Financial News Website: www.aastocks.com |
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