Core Viewpoint - The People's Bank of China (PBOC) is conducting a buyback reverse repo operation of 500 billion yuan to maintain liquidity in the banking system, indicating a relatively loose monetary policy in August 2023 [1][2][3]. Group 1: Reverse Repo Operations - The PBOC will conduct a buyback reverse repo operation of 500 billion yuan with a term of 6 months on August 15, 2023, following a previous operation of 700 billion yuan on August 8 [1][2]. - In August, there are 4 billion yuan of 3-month and 5 billion yuan of 6-month buyback reverse repos maturing, with a total of 3 billion yuan of Medium-term Lending Facility (MLF) also maturing [2][3]. - The total net injection of funds through the 3-month buyback reverse repo will be 3 billion yuan, while the 6-month variety will be fully offset [2]. Group 2: Market Liquidity and Policy Signals - The PBOC's actions are seen as a response to the upcoming government bond issuance peak and the large scale of maturing certificates of deposit, with a focus on encouraging financial institutions to increase credit supply [3][4]. - Analysts suggest that the PBOC will continue to use MLF and buyback reverse repos to inject medium-term liquidity, indicating a commitment to maintaining ample liquidity in the banking system [4]. - The average weighted interest rate for the interbank market has decreased, reflecting a continued decline in funding costs, which is influenced by various factors including monetary policy operations and market demand for funds [5][6].
净投放3000亿元!央行再出手 明日将开展5000亿元买断式逆回购操作
Mei Ri Jing Ji Xin Wen·2025-08-14 15:26