China's monetary toolbox sowing market volatility

Hong Kong

TLF, MLF, OMO.

China's monetary policy is looking increasingly like an alphabet soup, sowing volatility in markets. So far this year, the People's Bank of China has boosted rates on three different liquidity facilities, created a new one, and ordered banks to cut lending. Its most high-profile tools - the benchmark borrowing cost and reserve-requirement ratio (RRR) - have been left untouched.