Economics
PBOC Liquidity Stance Leaves Banks Looking for More Action
- Central bank offered 200 billion yuan of medium-term loans
- RRR cut likely this month to avoid liquidity squeeze: analysts
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The People’s Bank of China supplied banks with 200 billion yuan ($28 billion) in fresh liquidity Monday while letting some previous loans expire, leaving the financial system needing further injections if a looming cash crunch is to be avoided.
The central bank added the funds through the medium-term lending facility at an unchanged rate of 2.95%, according to a statement. The injection was telegraphed by the central bank last week when it said it planned to offer MLF loans on Monday in an one-off move to roll over the maturing liquidity this month.