Central Bank Starts to Withdraw Cash in Pivot From Crisis Policy Easing
(Bloomberg) — China’s central bank looks set to withdraw cash from the financial system in a sign that it’s moving toward normalizing monetary policy as major global peers are forcefully raising interest rates.
The People’s Bank of China (PBOC) slashed its daily short-term liquidity operation to 3 billion yuan ($447 million) this week, the smallest amount since January 2021. At this pace it’s likely to remove more cash in the first five days of this month than it injected toward the end of June.
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