Free Trial

The PBOC is unlikely to increase the....>

CHINA PRESS: The PBOC is unlikely to increase the open market operation interest
rate after the U.S. Fed increases its benchmark interest rate, China Securities
Daily said Thursday. 
  - "Liquidity in the banking system is at a relatively high level," according
to the PBOC on Wednesday, which means there is no need to continue to inject
liquidity this week, leaving no room for OMO interest rate adjustments; 
  - High fiscal spending this month, the weakening impact of government bond
issuance and reverse repo maturities also make it unnecessary to conduct OMO
injections, the newspaper said; 
  - China and the U.S.'s economic policies cannot be managed at the same pace,
as China's monetary policy currently lacks the foundation to be changed and as
the gap between China's OMO rate and market interest rate is very small, the
Journal said.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.