People's Bank of China shift to the MLF as the main policy tool - drain today facilitates
The news is here from earlier:PBOC net drain 550bn via MLF. Rate unchanged at 2%The Wall Street Journal (gated) recaps the move from the Bank, pointing out:In recent months, Chinese authorities have been recasting the PBOC’s seven-day reverse repo rate as the main policy rate while letting the shorter-term operation play a bigger role in managing liquidity, a practice more in line with those of Western central banks. Draining cash via the MLF tool helps facilitate the shift, economists say. Further easing is expected from the PBoC ahead. This article was written by Eamonn Sheridan at www.forexlive.com.
The news is here from earlier:
The Wall Street Journal (gated) recaps the move from the Bank, pointing out:
- In recent months, Chinese authorities have been recasting the PBOC’s seven-day reverse repo rate as the main policy rate while letting the shorter-term operation play a bigger role in managing liquidity, a practice more in line with those of Western central banks.
- Draining cash via the MLF tool helps facilitate the shift, economists say.
Further easing is expected from the PBoC ahead. This article was written by Eamonn Sheridan at www.forexlive.com.
