PBOC Boosts Injections as Money Rates Climb to Two-Week High
- Uses 28-day contracts to cover pre-Lunar New Year demand
- Auctions 9-month treasury deposits amid efforts to boost cash
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China stepped up cash injections in its open-market operations, striving to keep borrowing costs low as slowing economic growth spurs capital outflows.
The People’s Bank of China auctioned 80 billion yuan ($12 billion) of seven-day reverse-repurchase agreements, matching the amount offered a week ago, and another 75 billion yuan of 28-day contracts that will mature after the week-long Chinese New Year holidays starting Feb. 8. Gross domestic product rose 6.8 percent in the fourth quarter of 2015, missing analysts’ estimates, a report showed Tuesday. The central bank sold a record amount of foreign currency last month amid efforts to stem the yuan’s slide.