July 08, 2024 02:39 GMT
MNI BRIEF:PBOC Starts Temporary OMO Tools To Adjust Liquidity
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The People’s Bank of China will conduct temporary repurchase operations to promote open market operations efficiency, according to a statement on its website on Monday.
The central bank will conduct temporary overnight repurchase or reverse repurchase operations as needed, from 16:00 to 16:20 pm Beijing time on trading days, using a fixed rate and quantity bidding method, the statement said.
The interest rate for temporary overnight repurchase and reverse repurchase operations will be 20 basis points lower and 50 basis points higher than the 7-day reverse repurchase operation rate respectively, the statement added. The 7-day-repo rate is currently 1.8%. (See: MNI PBOC WATCH: LPR Reduction Eyed, MLF Downgrade Next)
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