PBoC’s new policy tool may have little impact, analysts say
Adding new open market operations does not mean major change to policy framework, say economists
The People’s Bank of China (PBoC) last week expanded its monetary toolkit in an effort to strengthen its day-to-day management of market interest rates. However, analysts say that although this could help smooth volatility in short-term rates, it does not imply a major change to the country’s monetary policy framework.
On July 8, the PBoC announced it would start conducting overnight repurchase (repo) agreements or reverse repo operations on a temporary basis during weekday afternoons, as
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