MNI: PBOC Cuts Repo Rates by 10 Bps, Net Injects CNY150 Bln

     BEIJING (MNI) - The People's Bank of China (PBOC) lowered the 7-day reverse

repo rate to 2.4% from 2.5%, along with a cut to the 14-day reverse repo rate

down to 2.55% from 2.65% on Monday, according to a statement on its website.

These follow a 5 bps cut to both the 7-day and 14-day interbank rate in November

18 and December 18 last year, respectively.

     - The People's Bank of China (PBOC) injected CNY300 billion via 14-day

reverse repos, and CNY900 billion via 7-day reverse repos on the same day,

according to the statement. This resulted in a net injection of CNY150 billion

given the maturity of CNY1.05 trillion of reverse repos, according to MNI

calculations.

     - The operations aim to offset the maturity of reverse repos and the

concentrated funds matured in the financial market with the aim of maintaining

reasonable and ample liquidity in the banking system during special periods of

epidemic prevention and control, the PBOC said.

     - The 7-day weighted average interbank repo rate for depository

institutions (DR007) rose to 2.6012% at 09:57 a.m. local time from the close of

2.5378% on Jan 23, the last working day before the Chinese New Year holiday:

Wind Information.

     - The CFETS-NEX money-market sentiment index closed at 35 on Jan 23 vs 39

on the previous day. A lower index indicates decreased market expectations for

tighter liquidity.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

[TOPICS: M$A$$$,M$Q$$$,MGQ$$$,MN$MM$]