Shanghai interbank rate lowest since May

Shanghai

Borrowing costs in Shanghai fell to the lowest level since May as funds returned to the banking system following increased demand for quarter-end regulatory needs.

The decline comes even amid signs that the central bank is against maintaining excessive liquidity as it looks to limit volatility in money-market rates. Data released over the weekend showed factory-gate deflation eased for the sixth month in a row, alleviating pressure on the People's Bank of China (PBOC) for further stimulus, according to Australia & New Zealand Banking Group Ltd.