PBOC's Pan: Will act if money market overnight rate persistently deviates from operation rates
The People’s Bank of China (PBOC) Governor Pan Gongsheng said on Wednesday that the central bank would act if the money market overnight rate persistently deviates from operation rates.
Additional quotes
To adjust the temporary overnight reverse and outright repurchase agreement time to 3-3:30 pm.
Meant to ensure flexible and efficient use of temporary overnight reverse and outright repurchase agreements in the open market.
Operating rates will be set at the 7-day reverse repurchase rate in the open market minus 25 basis points and plus 25 basis points, respectively.
Will initiate the action when the money market overnight rate remains consistently below or above the respective operation rates of the tools.
Will provide yuan liquidity to eligible overseas central bank-type institutions through the FIMA RMB repo facility
FIMA RMB repo will accept high-grade yuan bonds, including Chinese government bonds
To issue an action plan for developing offshore finance in the Shanghai International Financial Center.
Yuan to be expanded in offshore business scenarios.
Shanghai to study feasibility of setting up offshore banks.
Market reaction
The above comments had little to no impact on the Chinese proxy, the Australian Dollar (AUD), as AUD/USD trades 0.06% lower on the day at 0.7060 when writing.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
US and European interest rate trends may diverge! Citadel Securities: Energy shocks and high interest rates may increase downward pressure on the European economy
Castle Securities believes that although energy price shocks and the tightening of monetary policy by the European Central Bank have driven European bond yields to continue rising, these two forces may ultimately also act as factors limiting further increases in yields.
Bank of America (BAC.US) once plunged 6% as CEO sends cautious signal: Q3 trading revenue expected to be flat year-over-year, investment banking fee income may fall short of expectations
Bank of America CEO Brian Moynihan stated that the bank's trading revenue for the third quarter is expected to be "roughly flat" compared to the same period last year, indicating that after strong growth in the first half of the year, the growth momentum of Wall Street trading businesses is slowing down.
Overnight US Stocks | Three Major Indices Closed Lower, AI Giants Jointly Call for Slowing Development, Concept Stocks Plunge Across the Board
At the close, the Dow Jones Industrial Average fell by 152.01 points, or 0.29%, to 52,421.28 points; the S&P 500 Index dropped by 37.03 points, or 0.48%, to 7,619.95 points; and the Nasdaq Composite Index declined by 146.62 points, or 0.56%, to 26,186.41 points.
Bitcoin ETF See $463 Million Exit In Just Four Sessions
Crypto prices
More
