As Funding Costs Surge, China Set to Pump Extra Cash Into Money Market

(Bloomberg) — China’s central bank will probably increase the amount of cash it pumps into the money market this week to rein in funding costs.

The People’s Bank of China (PBOC) will offer 500 billion yuan ($73 billion) of one-year medium-term loans to banks in February, 200 billion yuan more than the amount maturing, according to the median forecast of economists surveyed by Bloomberg ahead of the Feb. 15 announcement. That’s after a gauge of overnight borrowing costs climbed to a two-year high last week.