PBOC Expected to Inject 200 Billion Yuan into Banks

China’s central bank is set to inject about 200 billion yuan ($32.66 billion) worth of three-month loans into five or six listed banks to keep liquidity ample and support the slowing Chinese economy, four sources with knowledge of the matter said on Friday.

The injection follows signs that Chinese investors are beginning to bet that the PBOC is going to reduce the official deposit rate, now fixed at 3 percent.

And it came after a 500 billion-yuan injection the People’s Bank of China (PBOC) made into China’s top banks last month via its standard lending facility (SLF) in the form of three-month loans.  “Banks got the notice this afternoon but perhaps will only receive the funds next week. This injection focuses on listed joint-stock banks,” one source said.

CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.