China’s central bank injected funds into the money markets on Tuesday for the first time since February, easing fears of a repeat of the panic in June when cash markets were squeezed.
The People’s Bank of China pumped 17bn yuan (£1.8bn) into markets through seven-day reverse bond repurchase agreements.
The bank made the liquidity injection after allowing a credit crunch to happen in late June as a warning against risky lending practices.
It set the reverse rate to be paid at 4.4%, much higher than the last official guidance of 3.35%.
via The Guardian
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