China may start pumping cash into the system again

Time for action: Policy makers will use a combination of tools to maintain neutral and slightly tight liquidity conditions for the rest of this year, according to a banking analyst. – Reuters

BEIJING: An onslaught of maturing funds may see China’s central bank reaching for the fire hose.

Liquidity has been flush in Asia’s largest economy – the result of a combination of curbs on loan issuance, a stronger yuan and seasonality factors. That’s seen the People’s Bank of China (PBoC) hold off on conducting open-market operations (OMO), until now.