China injects $15.5b cash into the financial system to maintain liquidity: report
The nation’s top leaders recently described economic recovery as “unbalanced and unstable.”
China’s central bank has injected $15.5b (100 billion yuan) of medium-term cash into the financial system, in an effort to keep borrowing costs stable as the country’s economy continues to recover from the pandemic, reports Bloomberg.
The money was added to the People’s Bank of China (PBOC)’s medium-term lending facility on Monday, matching the amount expected by analysts. Authorities kept the interest rate at 2.95%.
By rolling over the maturing funds, the operation is also seen to be supportive of the nation’s liquidity-sensitive stocks and also bonds.
Data showed China’s economic activity moderated in April from its record expansion in the first quarter. That eased concerns about further tightening of fiscal and monetary policies, according to Zhang Gang, a strategist with Central China Securities Co.
The nation’s top leaders recently described the recovery as “unbalanced and unstable,” pledging further efforts to drive a rebound in domestic demand.
Read more from Bloomberg.