China increased the liquidity it provided to the market
The People’s Bank of China (PBoC) carried out the largest medium-term liquidity injection in almost three years to support bond sales and contribute to the economic recovery.
While the People’s Bank of China injected a net 289 billion yuan into the markets today, the highest since 2020, it withdrew a net 134 billion yuan of short-term liquidity from the markets through open market operations.
Furthermore, while the Bank did not change the interest rate in line with market expectations, it also renewed its maturing medium-term policy loans.
The People’s Bank of China kept the one-year policy rate (MLF), which is the interest rate on the 789 billion yuan loan extended to some financial institutions, unchanged at 2.50 percent.
Analysts pointed out that, according to data announced in the country last week, the fact that the Consumer Price Index (CPI) remained below expectations, although it increased 0.2 monthly in September, gave a negative signal about economic activity, and noted that the government continued to take measures to support the economy. (AA)
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
