China’s Overnight Repo Rate Slides After PBOC’s Cash Boost
- PBOC net injects 190 billion yuan for second consecutive day
- Cash injections dampen monetary easing bets in near term
The People's Bank of China (PBOC) headquarters building in Beijing.
Photographer: Yan Cong/BloombergThis article is for subscribers only.
China’s overnight borrowing costs declined as the central bank continued to add cash to a banking system strained by tax payments, local-government debt issuance and fading monetary easing hopes.
The overnight interbank repo rate fell seven basis points to 1.54%, the lowest since Sept. 29 and near a nine-month low. The People’s Bank of China injected a net 190 billion yuan ($30 billion) into the financial system via seven-day reverse repurchase agreements for a second straight day Tuesday, which was the biggest single-day addition since January.