The People’s Bank of China further increased liquidity in the domestic market with the injection of 150 billion yuan in reverse repurchase agreements.
Friday's 150 billion yuan of 14-day reverse repos – the purchase of securities with the agreement to sell at a higher price – were priced with an interest rate of 2.65 percent.
«The country will continue to implement a proactive fiscal policy and prudent monetary policy», said a «Global Times» report, citing comments made at an annual Central Economic Work Conference held last week.
More Loosening
China’s monetary policy continues to pursue loosening to manage an ongoing slowdown caused by both internal and external factors ranging from domestic consumer price inflation to foreign political conflicts.
With no reverse repos were maturing on the same day, the injection represented a net positive of 150 billion yuan injection in the market. Earlier this month, the PBoC also increased its medium-term loans by 60 percent year-on-year to reach 300 billion yuan.
