Latest News:  
Beijing   Overcast/Moderate rain    9 / 12 ℃  City Forecast

English>>China Business

PBOC conducts record reverse repos to ease liquidity

(Xinhua)

08:19, October 31, 2012

BEIJING, Oct. 30 (Xinhua) -- The People's Bank of China (PBOC), the country's central bank, on Tuesday pumped massive liquidity into the interbank market through open market operations.

The central bank injected a record high of 395 billion yuan (62.7 billion U.S. dollars) into the financial system via reverse repos in order to ease a cash squeeze at the end of the month, according to a statement from the PBOC's website.

The central bank conducted seven-day reverse repos worth 290 billion yuan and offered 105 billion yuan in 14-day contracts. Bid interest rates remain stable at 3.35 percent and 3.6 percent, respectively, the statement said.

Shi Lei, an analyst at Ping'an Securities, said PBOC's massive repo injection demonstrates its intention to stabilize market rates and bring them down to its target range.

The central bank prefers reverse repos over reserve requirement ratio cuts when easing money supplies to prevent a rebound in housing and commodity prices.

"Open market operations will become the central bank's most important monetary policy tools in managing liquidity," said Guo Tianyong, a banking researcher at the Central University of Finance and Economics.

News we recommend:
"Made in China":Charming the World "Made in China":A Boon for the Masses "Made in China":A Blessing for Businesses
"Made in China":The Bitter Blessing From 'Made in China' to 'Created in China' [Special]'Made in China' Revisited
Rediscovering the Awakening Dragon:The Not-so-good Old Times   Rediscovering the Awakening Dragon:High on the Agenda Rediscovering the Awakening Dragon: The Cultural Transformation

Email|Print|Comments(Editor:厉振羽、张洪宇)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Band of brothers sets tone

  2. Destroyer flotilla in air defense drill

  3. Unforgettable moments in October (III)

  4. Hospitals to prevent theft of babies

  5. 50,000 gay people attended parade

  6. A Journey to Renaissance

  7. Charming autumn scenery around world

  8. Creative clocks.Do you like??

Most Popular

Opinions

  1. China, US have 'unique' role for world peace
  2. Libya conflict unlikely to impact US presidential race
  3. Trade protectionism won't work for US
  4. Growth depends on reining in abuse
  5. Multi-country dialogues growing hollow
  6. Grotesque gaps in income undercut social harmony
  7. Greek exodus a lesson for China
  8. Can Chinese workers learn to take deep breaths?
  9. Fine-tuning needed for home curbs
  10. Japan should face up to wrongdoing

What’s happening in China

Temperature drops in central and eastern China

  1. Former legislator might be tied to fatal rail crash
  2. Uproar after hospitals turn away pregnant woman
  3. Good Samaritans get an insurance policy
  4. China blocks 169 substandard food imports
  5. Stealing apples costs duo jobs at 5-star hotel