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PBOC's Treasury Trades Not QE

CHINA PRESS
MNI (Singapore)
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Any treasury trades by the People’s Bank of China would not equal Quantitative Easing, as the PBOC can either buy treasuries in the secondary market to release liquidity or sell them to guide market interest rates back up, Securities Daily reported citing Feng Lin, director of research at Golden Credit Rating. There is no prerequisite and necessity for the implementation of QE in China, the newspaper said, noting the open market operations and medium-term lending facility rates are 1.8% and 2.5%, far from zero interest rates. The PBOC still has ample room to cut rates and reserve requirement ratios and does not need treasury trades in the short term, the daily said citing analysts.

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Any treasury trades by the People’s Bank of China would not equal Quantitative Easing, as the PBOC can either buy treasuries in the secondary market to release liquidity or sell them to guide market interest rates back up, Securities Daily reported citing Feng Lin, director of research at Golden Credit Rating. There is no prerequisite and necessity for the implementation of QE in China, the newspaper said, noting the open market operations and medium-term lending facility rates are 1.8% and 2.5%, far from zero interest rates. The PBOC still has ample room to cut rates and reserve requirement ratios and does not need treasury trades in the short term, the daily said citing analysts.