PBOC May Add Liquidity to Help LGB Issuance, Cut RRRs: Times

The People's Bank of China may further boost liquidity including cutting banks' required reserve ratios to meet significant upcoming maturing MLFs and various demands of the economy, including the sales of local government special bonds, the Securities Times said citing analysts including Chen Qi of Chuancai Securities and Ming Ming of Citic Securities. On Tuesday, the central bank conducted the fourth daily reverse repo purchase valued at CNY50 billion, a larger sum and a signal that it wants to stabilize the market's expectations, the newspaper said. Liquidity showed marginal tightness at the end of August with DR007 rising to 2.2% from 2.0%, due to the maturing MLFs and due tax payments, the newspaper said. The central bank's large injections have kept market rates stable, said the newspaper.