Published on 29th October 2013
China’s central bank has allayed fears of a cash crush by injecting money into the financial system for the first time in two weeks, but it has also steered interest rates to a higher level in a signal of mild monetary tightening. The People’s Bank of China added Rmb13bn (2.1bn dollars) to the economy via open-market operations on Tuesday, having refrained from any liquidity injections since mid-October. It was a small amount, but was still seen as a clear indication that the central bank does not want a replay of the liquidity squeeze that rattled global markets in late June, according to the Financial Times.