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Latest move by PBOC is not a policy shift

The general impression seems to be that the latest liquidity injections by the People’s Bank are a form of stealth stimulus. But these are in fact run-of-the-mill operations designed to smooth liquidity ahead of an upcoming holiday, when cash demand rises, and the implementation of new banking rules. About the most we can say is that the central bank is erring on the side of caution by offering more than it usually would.

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