China Offers Banks Nearly $16 Billion to Maintain Liquidity
- PBOC adds just enough cash to offset amount coming due
- Move to help bonds, which had gained for three straight weeks
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China’s central bank injected medium-term cash into the financial system, in an effort to keep borrowing costs stable as China’s economy continues its recovery from the virus pandemic.
The People’s Bank of China added 100 billion yuan ($15.5 billion) of one-year funds with its medium-term lending facility on Monday, matching the amount coming due in a move that was expected by analysts. The authorities kept the interest rate unchanged at 2.95%.