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China's Central Bank Intensifies Assault on Financing Costs With Cash Injections

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PBOC Injects Another $23.4B Into Financial System

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China’s central bank brought out an array of tools to target stubbornly high financing costs this week, reducing interest rates, offering cheap loans and adding cash to the financial system through open-market operations.

Money-market rates are finally responding, with the overnight rate breaking a record 39-day run of increases and interest-rate swaps slipping to the lowest since July. Supply of cash has lagged demand especially since the People’s Bank of China stepped up yuan purchases to stabilize the currency in the wake of a shock devaluation on Aug. 11.