PBOC’s Record Fund Injection Cements Dovish Stance for Markets

China’s central bank injected a record amount of funds into the banking system through longer-dated liquidity tools in January, reinforcing its commitment to monetary easing and supporting markets with ample liquidity.

The People’s Bank of China has pumped a net 1 trillion yuan ($144 billion) of medium to long-term liquidity into banks so far this month, the most on record, according to Bloomberg calculations. The measures included the 3-month, 6-month outright reverse repurchase operations, as well as the latest 1-year medium-term lending facility.