PBOC refutes rumours that it is tightening monetary conditions
The central bank is out with a statement saying that it is "completely untrue" as Chinese markets got a bit of a scare this morning, with overnight repo rates jumping to their highest level in almost six years.
There was growing fear of a liquidity squeeze and the PBOC did little to ease that discomfort with just a ¥100 billion injection today - worries growing of a liquidity shortage going into the Lunar New Year holidays starting 11 February.
That said, look towards the Chinese authorities sending a firm message that they will ensure sufficient liquidity going into the holiday period to bolster confidence next week.
