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PBOC May Boost Liquidity to Meet Yearend Need: Daily

CHINA PRESS
MNI (Singapore)

The PBOC may increase liquidity injection via reverse repos, renew maturing MLFs with excess, or even cut banks' reserve ratios, to keep year-end liquidity stable and prevent upsurge in market rates, the Securities Daily reported citing analyst Wang Qing with Golden Credit Rating. Increasing reverse repos and MLF can meet the liquidity gap in December, but an RRR cut is still possible by yearend if the PBOC aims to release a pro-growth signal and boost credit and aggregate finance, Wang was cited as saying. There will be CNY950 billion MLF maturing in December, which will be the second-highest this year, along with local government bond issuance, and assessment on banks to drain liquidity, the daily said.

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