PBOC Returns to Skipping OMOs After Yesterday's Liquidity Injection
Tang Shihua
DATE:  Oct 17 2019
/ SOURCE:  yicai

(Yicai Global) Oct. 17 -- The People's Bank of China passed on open market operations again today after making the first injection in 10 working days yesterday.

No reverse repos matured today and so liquidity went unaffected as the central bank reiterated in a statement that liquidity in the nation's monetary system was already "reasonably ample."

PBOC injected some CNY200 million (USD28.2 billion) into the financial system yesterday via medium-term lending facilities, while no instruments expired.

The MLF loans are one of several tools the central bank uses to manage monetary policy and lending. They have provided selected banks with funds since authorities stepped up efforts to support lending to certain sectors, rather than adding liquidity to the overall financial system.
 

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Keywords:   Open Market Operation,PBOC,MLF,Reverse Repo