Skip to content
Subscriber Only

China Money Rate Rises on Speculation PBOC Favors Stability

China’s money-market rate rose for a third day as the central bank drained the most cash from the financial system in eight months, spurring speculation it will hold off from easing monetary policy further.

The People’s Bank of China withdrew 101 billion yuan ($15.9 billion) this week via open-market operations, after mopping up 24 billion yuan in the five days through Dec. 2, according to data compiled by Bloomberg. It cut lenders’ reserve requirements last week for the first time since 2008 and government data due tomorrow is expected to show inflation slowed to a 13-month low of 4.5 percent in November, based on the median estimate of economists surveyed by Bloomberg.