Central Bank Liquidity Moves Set Cautious Tone

(Beijing) – The central bank injected a net 252 billion yuan into the market in June, but reference interest rates in the interbank market remained high. Analysts predict tighter liquidity ahead.

The People's Bank of China did not take any open market operations on June 13. The seven-day repurchase rate in the interbank market rose to 6.38 percent, and the one-month and three-month varieties of the Shanghai Interbank Offered Rate (Shibor) increased to 6.962 percent and 5.205 percent, up by 15.1 and 6 basis points respectively from the previous day.