Central Banks
PBOC Extends Cash Support in May After Credit Growth Slumped
- Authority offered more policy loans versus maturities in May
- Liquidity operation sends a supportive policy signal: OCBC
This article is for subscribers only.
China’s central bank injected more long-term liquidity into the financial system for the sixth month in a bid to bolster economic growth after multiple indicators revealed faltering recovery momentum.
The People’s Bank of China offered 125 billion yuan ($18 billion) of medium-term lending facility, 25 billion yuan more than the amount maturing in May. Eight of 10 analysts surveyed by Bloomberg prior to the operation expected a flat rollover. The rate on the one-year policy loans was kept at 2.75%, unchanged for a ninth month.