Posted 11/27/2023, 10:58:00 PM
China Ramps Up Massive Liquidity Injections to Historic Levels to Calm Short-Term Rates
- China's central bank has carried out massive liquidity injections since September to rein in short-term rates
- Four of China's six largest liquidity operations in a week have occurred since September
- The injections aim to limit volatility in short-term rates amid mounting government debt
- The central bank intervenes through daily reverse repo operations and monthly medium-term lending
- The operations have been ramping up at an unprecedented pace in recent months