China Money Rate Increases as Banks Build Up Cash Before Holiday
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China’s money-market rate climbed the most in a month on speculation banks will start hoarding funds to meet a seasonal pickup in cash demand before the Chinese New Year holidays.
The People’s Bank of China is rolling over at least part art of the 269.5 billion yuan ($43.4 billion) of three-month loans it extended to banks via the medium-term lending facility in October. The monetary authority is opting to supply cash via means other than open-market operations, which haven’t been conducted since November.