Economics
PBOC Steps Up Cash Injections Before Holiday as Rates Increase
- Open-market operations added a net 40 billion yuan this week
- Seven-day repo rate climbs by the most in seven weeks
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China’s central bank stepped up cash injections as a benchmark money-market rate climbed the most in seven weeks in the run-up to a weeklong holiday.
The People’s Bank of China added 80 billion yuan ($12.5 billion) to the financial system on Thursday using 14-day reverse-repurchase agreements, double the 40 billion yuan supplied via seven-day contracts a week ago. Open-market operations injected a net 40 billion yuan for the week. The tenor of reverse repos auctioned was changed as China’s financial markets will be closed Oct. 1-7 for the National Day holiday.