China Money Rate Jumps Most This Year as PBOC Skips Injections

China’s benchmark money-market rate rose by the most this month as the central bank refrained from adding funds even as dealers expect tax payments and pre-holiday demand to reduce the supply of cash.

The People’s Bank of China didn’t issue 14-day reverse-repurchase agreements today, the second week it hasn’t injected any money, according to data compiled by Bloomberg. Commercial lenders usually need to park corporate tax payments with the central bank in the month after the end of the quarter, cutting the supply of funds in the interbank market. There is also likely to be an increase in demand for cash before the Chinese New Year holidays, which start from Jan. 31.