PBoC launches new reverse repo operations
Injections via new liquidity tool could help offset maturing central bank loans to banks in fourth quarter
The People’s Bank of China has expanded its monetary policy toolbox by launching a new open market reverse repo facility today (October 28), following a series of changes to its monetary policy framework in recent months.
The central bank would start conducting outright reverse repurchase agreements with primary dealers on a monthly basis for no more than a year, it said in a statement. It did not specify the tenors of the repo agreements but said quantities would be fixed and primary dealers
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