PBOC To Keep Liquidity Ample Until Year-end - Journal

The People’s Bank of China will moderately increase open market operations to meet increased liquidity demand by the end of the year, thereby maintaining reasonable and ample liquidity, China Securities Journal reported citing analysts. The expected CNY500 billion of funds to be released after the cut to banks reserve requirement ratio on December 5, combined with the use of structural monetary policy tools, can offset the impact of a maturing Medium-term Lending Facility in the middle of the month. Increased fiscal spending near year-end will also increase liquidity supply, the newspaper said citing analysts. The provision of additional fiscal spending will come near year-end, the newspaper added.