China Ramps Up Economic Support With Biggest Ever Cash Injection
- The PBOC adds a net 632 billion yuan with reverse repos
- Beijing is determined to keep cash supply ample: analyst
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China ramped up its support for a nascent economic recovery, seeking to nip a squeeze in bank borrowing costs in the bud by injecting a record amount of cash to its financial system.
The People’s Bank of China offered the short-term cash boost to lenders on Friday, having just pumped one-year money into the system earlier this week. The operations came after a gauge of interbank funding costs soared to the highest in two years last week and stayed elevated since.