China’s central bank takes more control over rates by adding temporary repos


BEIJING: The People’s Bank of China (pic) acted to take more control of market interest rates, announcing additional open market operations and tightening the band within which short-term rates can fluctuate.

The central bank will conduct bond repurchase or reverse repurchase operations in the afternoon as needed, in addition to its traditional morning operations, according to a statement on Monday (July 8). The price will be based on the seven-day reverse repurchase rate, strengthening it as a benchmark policy rate.

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