China central bank skips OMO as first phase of RRR cuts come into effect


The People's Bank of China (PBOC) said the first phase of reserve requirement ratio (RRRs) cuts came into effect on Wednesday, and the move released about 100 billion yuan ($14.55 billion) worth of long term funds.

SHANGHAI: China's central bank said it will skip open market operations on Wednesday as liquidity levels in the banking system were "reasonable and ample".

The People's Bank of China (PBOC) said the first phase of reserve requirement ratio (RRRs) cuts came into effect on Wednesday, and the move released about 100 billion yuan ($14.55 billion) worth of long term funds.

The central bank said last Monday that it would implement its cut in RRRs for some small- and medium-sized banks in three phases, as part of wider efforts to help companies weather a slowdown in the world's second largest economy.

On a net basis, the PBOC will drain 10 billion yuan from the market for the day via open market operations as the same amount in reverse repos is due to mature on Wednesday. - Reuters

Start your ads-free experience now!

Monthly Plan

RM13.90/month

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!

PBOC , Peoples Bank of China , OMO , RRR , liquidity ,

   

Next In Business News

Africa’s Great Green Wall to miss 2030 deadline
Pipeline of new projects for Glomac
Sunway offers Handyman services
European dairy, pork producers wary of Chinese retaliation for EV tariffs
Low impact on inflation from diesel price hike
High demand for power charges up sector
Agreement on Project Nexus shared goals
Mohammad Faiz Azmi is SC executive chairman
SC unveils first practical guide on VC and PE
Long-term view on structural reform agenda vital

Others Also Read