Inter-bank Liquidity Remains Ample Across The Month

Inter-bank liquidity is generally sufficient and the funding situation will remain stable across the month, Securities Daily reported citing Wang Qing, chief macro analyst from Golden Credit Rating. The People’s Bank of China has kept the amount of open market operations relatively low due to limited demand for cash withdrawals during the May Day holiday, said Wang. The average value of DR007 since April is 1.85%, which is close to the current short-term policy rate of 1.8%, indicating no obvious liquidity demand pressure, the newspaper said citing analysts. The average DR007 will continue to run above 1.8% in May, as fiscal spending moderates due to season factors while the issuance of local government bonds will likely accelerate, said Wang.