PBOC Seen Adding Liquidity After China Money Market Rates Surge
- Bank tries to calm market after rates surge, liquidity tight
- State media blames financial institutions for disturbance
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The People’s Bank of China will likely inject ample liquidity into the money market after interest rates surged on Tuesday, according to a person close to the central bank, as state media blamed financial institutions for “disturbing” the market.
Money market rates will likely retreat toward the rates used in the central bank’s open market operations from Wednesday, said the person, who asked not to be identified. Liquidity in the banking system is relatively abundant, the person added.