PBOC Offers Record $112 Billion of Cash as Economy Struggles.

China's central bank, the People's Bank of China (PBOC), has injected a record-breaking amount of cash into the economy through one-year policy loans. This move is aimed at supporting an economy that is struggling due to a housing slump and weak demand. The PBOC offered commercial lenders 1.45 trillion yuan ($204 billion) through its medium-term lending facility, which is 800 billion yuan more than the expected maturity this month. This injection of funds suggests that China will continue to pursue an easy monetary policy and indicates that the reserve-requirement ratio for banks will not be cut in the near future. The government's challenge of selling an additional 1 trillion yuan in the last quarter of the year to finance stimulus is also highlighted. The article mentions that China's economy has faced difficulties this year, with a weaker-than-expected rebound from Covid-19 restrictions and a deepening property crisis. The continuation of funding support reflects the need for more government action to support the recovery. The rate on the one-year loans remains unchanged at 2.5%. [Extracted from the article]

Copyright of Bloomberg.com is the property of Bloomberg, L.P. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)