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PBOC May Inject CNY900 Billion to Prevent Holiday Shortage: News

CHINA PRESS

The PBOC may need to inject around CNY900 billion into the financial system in case of a liquidity gap around the mid-February Lunar New Year, the Shanghai Securities News reported citing Ming Ming, the chief analyst at CITIC Securities. The central bank may inject funds through MLF and 14-day reverse repos while avoiding credit flooding, the newspaper said citing Ming. The PBOC will avoid making abrupt changes to its monetary policies so as to balance between economic recovery and risk avoidance, and to stabilize the macro leverage ratio, the newspaper said citing a recent remark by Sun Guofeng, the head of the PBOC's monetary policy department.

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