China's Central Bank Creates New Liquidity Tools to "Help" Monetary Policy China’s central bank has announced the introduction of temporary bond repurchase agreements and reverse repos to enhance open market operations and maintain ample banking system liquidity. This move is seen as a step towards establishing a new interest rate corridor, with the seven-day reverse repo rate as the central guide. The new tools will have overnight tenors and interest rates set 20 basis points below and 50 basis points above the seven-day reverse repo rate. This adjustment aims to give the central bank more flexibility in managing cash conditions and interest rates, particularly in response to high demand for bonds. The change aligns with the central bank governor’s recent statement about the seven-day rate’s role as the main policy rate. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Potential 2025 Recession Could Plunge Stock Market by 30%, Experts Warn READ MORE Record-Breaking July for CME Group: 24.8 Million Contracts Traded Daily READ MORE Evidence and Insights About Gold’s Long-Term Uptrend READ MORE What is a Goldback? How and Where to Buy Goldbacks in The United States READ MORE INCREMENTUM : Preview Chartbook of the In Gold We Trust Report READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment