Caixin OnlineOpinionCommentaries Powerful New Tool for Keeping Interest Rates Steady and Low
01.28.2013 17:54

Powerful New Tool for Keeping Interest Rates Steady and Low

The central bank's use of Short-term Liquidity Operation to regulate credit supply amounts to quantitative easing on a small scale
By Xu Hanfei

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).

We hope you have enjoyed your free articles for the month
REGISTER to get 5 more free articles, or SUBSCRIBE to get full access to Caixin
Already a subscriber? Log in now
COMMENTS (0)
Sign up to receive our free daily newsletter
Latest Issue
On the Cover:

Ammonia in the Haze

Farms and cars are contributing to rising levels of ammonia gas in the country, but the impact on air pollution is still hazy


Issue 82
October, 2014

POPULAR GALLERIES

SUBSCRIPTIONS

Caixin-China
Economics & Finance
Latest Issue:
Ammonia in the Haze
Farms and cars are contributing to rising levels of ammonia gas in the country, but the impact on air pollution is still hazy
Issue 82
10.01.2014

Subscribe       |       Newsletter        |        FAQ