The People's Bank of China skipped open market operations again today, the 6th consecutive day of doing so
After maturing reverse repos it's a net drain of 50bn yuan in OMOs
The Bank also announced it would set up a temporary liquidity facility for Lunar New Year (there is usually a surge in demand for cash ahead of Lunar New YearThis will provide commercial banks with more cash available ahead of the approaching Lunar New Year
- Allows banks to temporarily keep fewer reserves with the PBOC
- Some banks will be allowed to lower their reserve requirement ratios by up to 2% for 30 days
(The first day of Lunar New Year in 2018 is February 16)
