China injects $124.3B into banks to maintain liquidity amid growing local government debt.

China's central bank injected 900 billion yuan ($124.3 billion) into the banking system via one-year loans at a 2% interest rate to maintain liquidity. This move follows the maturation of 1.45 trillion yuan of previous loans and comes as local governments increase bond sales to manage debt. The central bank's MLF interest rate has remained unchanged for the second month, and economists expect further easing measures in the future.

November 25, 2024
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