PBOC scales back cash injections before banks' liquidity checks
Analysts surprised to see net withdrawal in open market operations
Shanghai
THE People's Bank of China scaled back the use of a short-term lending tool in its open-market operations, draining cash from the financial system as banks prepare to meet year-end liquidity checks by regulators.
The monetary authority auctioned 10 billion yuan (S$2.18 billion) of seven-day reverse-repurchase agreements at an interest rate of 2.25 per cent, less than the 30 billion offered a week ago. Banks' demand for funds typically rises in the run-up to deadlines for them to meet regulatory requirements.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Sri Lanka’s economy expected to grow 3% in 2024, central bank says
Yellen says US can bring inflation down without hurting jobs
US dollar briefly falls versus yen after GDP data
US weekly jobless claims unexpectedly fall
US economic growth slows more than expected in Q1
Malaysia ex-PM Mahathir facing anti-graft probe in a case involving his sons