May 30, 2024 01:56 GMT
PBOC To Increase Reverse Repos At Month's End
CHINA PRESS
MNI (Singapore)
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The People’s Bank of China will likely continue to increase reverse repo operations to ensure stable liquidity and funding across months, Shanghai Securities News reported citing analysts. Analysts also have rising expectation for cuts to the reserve requirement ratio or interest rate given the recent significant issuance of local government bonds, the newspaper said. Europe may cut rates ahead of the U.S. in early June, which will help ease the depreciation pressure of the yuan and leave room for PBOC easing, while weak demand and banks’ high liability costs also require an RRR cut, the newspaper said citing Huaxi Securities.
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