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 What Could Derail Gold’s Bull Run? One Analyst Says Japan READ MORE Silver Hits Three-Year Peak, Gold at Record High READ MORE Upcoming Jobs and CPI Reports Crucial for Fed's Interest Rate Decision READ MORE Gold Hits Three-Week High as Cooling Inflation Fuels Fed Rate Cut Hopes READ MORE HSBC Introduces Groundbreaking Tokenized Gold in Hong Kong READ MORE Add a Comment Cancel replyYour email address will not be published.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