China’s Cash Operation, Stronger Data Damp Broad Easing Bets
- PBOC fully rolls over policy loans falling due in November
- Chance of RRR cut in the fourth quarter close to zero: ANZ
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A reduction in China’s reserve requirement ratio looks increasingly unlikely after the authorities rolled over all policy loans coming due and data surprised on the upside, suggesting that bonds will have little room to gain.
The People’s Bank of China injected 1 trillion yuan ($157 billion) through its medium-term lending facility on Monday, matching the record amount maturing in November. The nation’s October retail sales and factory output data beat economists’ forecasts, and all this indicate there’s little need for policy easing for now, according to Australia & New Zealand Banking Group Ltd.