Economics
PBOC Adopts Daily Open-Market Operations, Enhancing Rate Signals
- Auction windows were scheduled to revert to twice a week
- Central bank said to reduce rates on some medium-term loans
How PBOC Pumping Money Into Markets Impacts Investors
This article is for subscribers only.
China’s central bank said it will start conducting open-market operations every business day, strengthening its influence on interest rates.
The People’s Bank of China introduced daily auctions from Jan. 29 to manage liquidity around the Lunar New Year holiday, a period in which surging demand for funds has led to cash squeezes in the past, and was due to revert to twice-weekly auction windows -- on Tuesdays and Thursdays -- from next week. It said the extension of the current schedule aims to improve the effectiveness of the operations, which adjust short-term liquidity in the banking system.