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China's central bank skips reverse repos Wednesday

Xinhua News,BEIJING
2020-05-13 09:55

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BEIJING, May 13 (Xinhua) -- The People's Bank of China (PBOC), the country's central bank, skipped open market operations via reverse repos Wednesday.

The banking system reports reasonable and sufficient liquidity at present, the PBOC said in an online statement.

As no reverse repos matured Wednesday, there is no net liquidity withdrawal from or net liquidity injection into the banking system.

A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

China's central bank pledged in its first-quarter monetary policy report that it will step up counter-cyclical adjustments to support the real economy, make the prudent monetary policy more flexible and appropriate, and continue to deepen the reforms of the market-oriented interest rate and the yuan exchange rate formation system.

Official data released Tuesday showed China's consumer inflation eased to 3.3 percent in April on retreating food prices. Analysts expect the inflation to continue to retreat in the coming months to allow policymakers more leeway to stimulate the real economy.
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