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China’s central bank continues to skip open market operations

Updated: Apr 9,2019 2:42 PM     Xinhua

BEIJING — China’s central bank continued to skip open market operations for the 14th consecutive trading day on April 9, citing abundant liquidity in the banking system.

The People’s Bank of China said liquidity has been at a relatively high level.

The central bank has skipped reverse repos for 14 consecutive working days.

No reverse repo is due on April 9.

The overnight Shanghai Interbank Offered Rate (Shibor), which measures the borrowing cost of China’s interbank market, increased 36.9 basis points to 1.797 percent April 9.

A reverse repo is a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

China will keep its prudent monetary policy “neither too tight nor too loose” while maintaining market liquidity at a reasonably ample level in 2019, according to the annual Central Economic Work Conference held last year.