The People's Bank of China has continued to climb down from its tough stance on liquidity,...

|By:, SA News Editor

The People's Bank of China has continued to climb down from its tough stance on liquidity, allowing 36B yuan ($5.9B) to flow into the banking sector via bills and forward bond repurchase agreements that mature today. Inter-bank funding rates continued to fall, with the benchmark seven-day bond repurchase rate dropping 69 bps to 4.76% and the overnight repo rate tumbling 63 bps to 3.79%. Meanwhile, the government has instructed local media to stop "hyping the so-called credit crunch."