Reported about 1 year ago
On June 25, 2024, the People's Bank of China announced a 7-day reverse repurchase operation of 300 billion RMB with a stable interest rate of 1.8% to maintain liquidity stability by releasing a net 214 billion RMB. The increased operation size aims to address market rate fluctuations due to factors like accelerated government bond issuance and impending tax payments, with the aim of avoiding excessive liquidity volatility as quarter-end and mid-year approaches. Anticipation of reserve requirement cuts and interest rate reductions later in the year persists as an approach to accommodate the increased short-term funding needs and market stability.
Source: YAHOO