PBOC: Will further improve monetary policy transmission channel

Reuters reports the latest comments by the People’s Bank of China (PBOC), with the key headlines found below.

Will guide reasonable growth of credit and social financing.

Will further improve monetary policy transmission channel.

Will step up way financial support for private and smaller companies.

Will open up financial markets in an orderly way.

Meanwhile, the Chinese central bank conducted its first reverse repo operation after 36 trading day hiatus with no reverse repos maturing on Monday.

The PBOC injected a net 160 bln Yuan on the day.

Explaining today’s reverse repo operation, the PBOC says it resumed reverse repo operations (After 36 Days) to keep banking system liquidity reasonably ample.

PBOC added that reverse repos to counter drain from regular tax payments, govt bond issuance and financial institution RRR payments: statement.