Central bank continues to boost liquidity to help banks

The move marks the highest weekly injection since early-February and brings net injections over the last five weeks to Rmb 716bn. This follows a dominant trend of weekly liquidity withdrawals since Chinese New Year in mid-February. The liquidity boost is a sign that the PBoC remains more concerned about the rate of slowing growth than about inflation, suggesting lending rates are unlikely to be hiked in coming weeks.

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