China's Money Rate Gains Most Since June While PBOC Injects Cash
- Central bank is less likely to use RRR cuts, analyst says
- Tax bills, maturing medium-term loans seen tightening market
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China’s benchmark money-market rate climbed the most since June, reflecting tight cash conditions, even as the central bank injected the most funds in almost three months.
The seven-day repurchase rate jumped 16 basis points to 2.48 percent at Friday’s close. More than 400 billion yuan ($62 billion) in corporate taxes deposited with commercial lenders will move out of the banking system this month, according to Huachuang Securities Co. estimates. The People’s Bank of China made less medium-term loans than those that came due in April.