Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Prudent Investor Newsletter (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

China’s Central Bank Floods System with Record Cash

% of readers think this story is Fact. Add your two cents.


China’s central bank flushes her financial system with record cash

From Businessweek/Bloomberg,

China’s interest-rate swaps fell from a three-month high as the central bank injected record funds into the financial system to ease a cash crunch.

The six-month contract, the fixed cost to receive the seven-day repurchase rate, fell five basis points, or 0.05 percentage point, to 3.25 percent as of 10:27 a.m. in Shanghai, according to data compiled by Bloomberg. It reached 3.31 percent yesterday, the highest since May 11. The seven-day repo rate, a gauge of interbank funding availability, increased 10 basis points to 3.72 percent, a weighted average shows.

The People’s Bank of China conducted 220 billion yuan ($34.6 billion) of reverse-repurchase operations, the most in a single day, according to a trader at a primary dealer required to bid at the auctions. The government may introduce new policies to boost consumers’ borrowing and spending this year, the Economic Information Daily reported today, citing an unidentified person.

“This unusually large volume points to the central bank’s concern about the elevated level of money-market rates,” Dariusz Kowalczyk, a strategist at Credit Agricole CIB in Hong Kong, wrote in a note to clients today. “We still expect a reserve-requirement cut, but the impact of this large open- market operation should be lower interest-rate swaps at the short end.”

The central bank last lowered banks’ reserve requirements in May and cut benchmark interest rates in June and July to support the economy. Gross domestic product increased 7.6 percent from a year earlier in the second quarter, the least since the first quarter of 2009, official figures show. Economic growth will slow to a 13-year low of 8.2 percent in 2012, based on the median estimate in a Bloomberg survey.

By the way the PBOC acted, China’s economy has been suffering more than just a slowdown. Yet this, perhaps, may be a precursor to bigger interventions.

The Shanghai index closed modestly higher today. Gold prices has so far responded positively.

This content provided courtesy of Prudent Investor Newsletter


Source:



Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.


LION'S MANE PRODUCT


Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules


Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.



Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.


Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.