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PBOC Aims to Add Liquidity After Surge in Money Market Rates
The People’s Bank of China will likely inject “ample” liquidity into the money market after interest rates surged on Tuesday, according to a person close to the central bank who asked not to be identified. Money market rates will likely retreat toward the rates used in the central bank’s open market operations from Wednesday, the person said. Liquidity in the banking system is relatively abundant, the person also said. Liquidity was tight Tuesday at month-end due to factors including payments to the finance ministry, state-owned China Central Television reported. The report blamed some unidentified financial ... (full story)