Economics
China Money Rates Come Off Highs as PBOC Boosts Cash Injections
- Benchmark interbank rate rose to highest this month on Friday
- Central bank to add more cash at end-July: Shenwan economists
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China’s benchmark money-rate rate came off this month’s highs, with the central bank boosting its cash injections by the most in five weeks amid concern mounting maturities may trigger a liquidity squeeze.
The People’s Bank of China pumped in a net 220 billion yuan ($32.6 billion) via open-market operations on Monday, the most since June 16. That followed the biggest weekly injection since January, when funding demand spiked ahead of the Lunar New Year holidays. A combined 678.5 billion yuan of reverse-repurchase contracts and Medium-term Lending Facility loans are coming due this week, which will drain cash from the financial system.