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PBOC Seen Cautious with Liquidity Injection: News

CHINA PRESS
MNI (Singapore)

The PBOC has been cautious in injecting short-term liquidity as it has only increased net injections by month-end during the past three months, the Shanghai Securities News reported citing analysts. The PBOC net-injected CNY40 billion via reverse repos yesterday to fill in the month-end liquidity gap and smoothen the accelerated issuance of local government bonds, the newspaper said citing Ming Ming, research head of CITIC Securities. Analysts noted that though the central bank increased the volume of reverse repos operation, the operating interest rate is kept unchanged, indicating that prudent monetary policy remains, the newspaper said.

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