China’s central bank has allayed fears of tighter monetary policy as repeated liquidity injections restored calm to its overnight lending market after a scramble for cash sparked a spike in rates to a five-year high.
The People’s Bank of China appeared to declare success after three days of net liquidity injections totalling 174 billion yuan ($55.7 billion) by withdrawing 80 billion yuan from the financial system on Wednesday, as the overnight rate tumbled to 1.85 per cent from 3.33 per cent on Friday.
Loading...
Robert writes on companies and markets. He is a former New York and Shanghai correspondent, and has worked in Hong Kong. Email Robert at robertguy@afr.com.au
