3 Feb 2015
PBoC continues to pump liquidity – MP
FXStreet (Barcelona) - Dean Popplewell, Director of Currency Analysis at MarketPulse, notes that PBoC has continued to pump in liquidity in the Chinese market, with its latest action being the largest injection seen in 12months.
Key Quotes
“Chinese PBoC continues to inject cash into the financial system through open market operations going into the Lunar New Year holiday spending period. This they have done with another +¥90b move in both seven and 28-day repos.”
“The authorities actions happen to be the largest injection in just over 12-months.”
“The market believes that investors be looking towards PBoC, Thailand, Korea, India and Indonesia for further easing actions – and not just at the scheduled meetings.”
“Intermeeting decisions are looking to be more of the norm, the element of surprise is clawing back some Central Bank credibility.”
Key Quotes
“Chinese PBoC continues to inject cash into the financial system through open market operations going into the Lunar New Year holiday spending period. This they have done with another +¥90b move in both seven and 28-day repos.”
“The authorities actions happen to be the largest injection in just over 12-months.”
“The market believes that investors be looking towards PBoC, Thailand, Korea, India and Indonesia for further easing actions – and not just at the scheduled meetings.”
“Intermeeting decisions are looking to be more of the norm, the element of surprise is clawing back some Central Bank credibility.”