China Money-Market Rate Falls as Nine-Day Rise Judged Excessive
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China’s benchmark money-market rate fell, snapping a nine-day advance, on speculation recent increases were excessive and that the central bank will act to stabilize the market.
The People’s Bank of China gauged demand for offerings of seven- and 14-day reverse-repurchase contracts this week, according to a trader at a primary dealer required to bid at the sales. Pressure on China to tighten monetary policy is easing as inflation will be “relatively low” this month due to slowing food-price gains, PBOC adviser Song Guoqing said at a forum in Beijing on March 2, indicating he was giving his own view.