The People's Bank of China flooded the domestic market with liquidity last week after taking over an Inner Mongolian bank, seeking to stem any fears of systemic risk.
Control over media helps with that too of course.
Anyway, ahead:
- The PBoC has fully estimated and prepared for the various factors that will affect liquidity in June
- will flexibly use OMO and the MLF in accordance with the cash supply-and-demand situation of the market
- the previously announced phased cut to reserve requirements is expected to release 100 bn yuan in long term liquidity to medium and small sized banks on June 17
(bolding mine)
Notably even yesterday the PBOC continued with a decent injection of funds, 80bn yuan via OMOs.
