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China March Interbank Liquidity Seen Ample: Daily

CHINA PRESS
MNI (Singapore)

China's interbank liquidity is expected to remain ample this month as the PBOC will use various tools to offset the impact of tax season and short-term global financial market volatility following the geopolitical conflict, the Securities Daily reported citing analysts. RRR cuts, interest rate cuts, structural tools and open market operations are all in the central bank’s toolbox depending on domestic demand recovery and price level, the newspaper said citing Zhou Maohua, a researcher with Everbright Bank. Fiscal deposits at commercial banks in March will also help to smoothen the gap of CNY300 billion MLF matured, the daily cited analysts as saying. The PBOC had increased reverse repos last week, net injecting CNY760 billion at month-end, the newspaper added.

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