On Wednesday, the People’s Bank of China (PBoC) injected cash into the financial system, in what has been seen as a measure to ease short-term liquidity pressure on banks, after it dismissed speculation that it would make a more aggressive move to cut the reserve requirement ratio for some lenders, reported Caixin.
The cash injection reinforced analysts’ view that the central bank is now backing away from further loosening monetary policy after the recent release of key economic indicators showed the economy stabilized in the first quarter.
The PBoC provided RMB 267.4 billion ($39.8 billion) to some large and midsize banks through its targeted medium-term lending facility (TMLF) on Wednesday to reward them for enhancing credit support for small and private companies in the first three months of this year, the central bank said in a statement.
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