Powerful New Tool for Keeping Interest Rates Steady and Low
The central bank has said it would use Short-term Liquidity Operation (SLO) to supplement existing open market operations in regulating credit supply.
The move merits attention for four reasons.
First, it enhanced the central bank's flexibility when using open market operations to deal with a more volatile liquidity environment. Before SLO, the bank had only three tools in open market operations: central bills (which mature in three months to three years), repurchase agreements (seven to 182 days) and reverse repurchase agreements (five to 28 days).
- Ruins of Urbanization
- In Friday's Papers: China, U.S. to Enhance Cooperation on Shale Gas; Wang Qishan 'May Only Serve Five Years'
- Fifth Chinese Artwork Sells for at Least 100 Mln Yuan in 2013
- Women and National Trauma in Late Imperial Chinese Literature
- The Chinese Art Book
- Evergrande Partners with Harvard to Build Hospital in China
- On Common Ground
- Mandela's Life
- Sina Corp., Investment Fund Management Firms Mull Net Sales
- Nationalists Pose a Problem for Two Nations
- Sign up to receive our free daily newsletter
- Yi Gang: China's Forward-Thinking Forex Chief
- As U.S. Refuses a Dirty Fuel, China Only Too Ready to Increase Imports
- Gov't Grapples with Shortage of Natural Gas
- Closer Look: The Battle Lines Are Drawn for Alibaba and Tencent
- Never Ladies of Leisure
- Tough Timing
- Coal Industry Finds Itself at a Crossroads
- Closer Look: Visit by Cameron Focuses on Trade and Investment
- Yi Gang: China's Man for Market Logic
- Caixin Explains: New Rules for IPOs Let Market Forces Do the Talking