China money market rate falls to two-week low

China’s seven-day repurchase rate, a gauge of interbank funding availability, has fallen 0.15% to a two-week low of 3.66% on signs the central bank believes there is enough liquidity to withdraw funds for another week, Bloomberg reported. The People’s Bank of China sold RMB30 billion (US$4.9 billion) of 14-day repurchase agreements on Tuesday at 3.7%. “It looks like the PBOC will have another net withdrawal this week, which means it believes there’s enough liquidity in the banking system,” said analyst Chen Peng. “Its focus will continue to be on lowering funding costs for some sectors by targeted easing measures, rather than to flood the market with money.”