China’s central bank said it would skip open market operations on Thursday in order to keep liquidity stable in the banking system. “There are a few factors improving the liquidity recently,” the People’s Bank of China (PBOC) said in a statement on its website.
The last time the PBOC skipped the open market operations was on Feb.10, when it skipped operations for six straight trading days. The PBOC drained a net 280 billion yuan ($40.51 billion) last week.
In early trade on Thursday, the volume weighted average of the seven-day repo rate was at 2.35 percent, down 27.37 basis points from the previous closing average rate.