The central bank to restart the 14 day repo: smooth fluctuations in short-term liquidity RRR decreased probability of Sohu financial newspaper reporter Yang Zhijin Beijing reported in the central bank’s liquidity management slightly changed after half a year later, the resumption of the 14 day repo, let the market by surprise, interest rate market and the bond market showed a significant response, funding costs rise such as, rose 24, Shibor more than the period of interest rate, ROO1 (inter-bank market repo, 1 days) on the morning of 24 price was as high as 2.7076%, after 3 pm is down to around 2.1%. The central bank’s main purpose is to reduce the fluctuations in the financial side, stable capital, at the same time, the central bank increased the flexibility of open market operations, to avoid the liquidity squeeze down passive signal to release the statutory reserve rate policy easing. Analysis of the industry, does not rule out the future of the central bank in the operation of the repurchase period will continue to be extended to 28 days, then the cost of capital (money market weighted average price) will rise further. Introduction there are unnamed traders on twenty-first Century Economic Herald reporter said, do not rule out the central bank in the future will continue to lengthen the operation of reverse repurchase period to 28 days, then the cost of capital (money market weighted average price) will rise further. After a lapse of six months, the people’s Bank of China to restart the 14 day repo. August 24th, the central bank open market 50 billion and 14 days reverse repurchase operation, the interest rate of 2.4%, unchanged from the previous. The last time the central bank launched a 14 day repurchase operations in February 6th this year. Reverse repurchase period of 14 days a little longer, the purpose of the central bank is mainly to reduce the volatility of the capital side, smooth capital side." One was in the open market operation room had a market on twenty-first Century Economic Herald reporter said, "the 7 day period is short, due to face many problems and the sequel sequel, likely to cause fluctuations." There are unnamed traders on twenty-first Century Economic Herald reporter said, do not rule out the central bank in the future will continue to lengthen the operation of reverse repurchase period to 28 days, then the cost of capital (money market weighted average price) will rise further. 14 days of reverse repo or will start to cut interest rates and other quasi monetary policy operation. Fixed income analyst at Guotai Junan Xu Hanfei said, the central bank increased 14 day repurchase operation, apparently in order to increase the central bank’s open market operation flexibility, avoid tight liquidity in the passive down signal to release the easing of the statutory reserve rate. The rise in the cost of capital is an open market operation of the central bank’s monetary base, the main monetary policy tool to regulate market liquidity, which is divided into reverse repurchase and repurchase. The central bank to provide liquidity to the market through reverse repurchase operations covering 7 days, 14 days, January, March, and other multiple deadlines. One of the most used tools of the central bank is 7 days reverse repurchase. The central bank recently used 14 days reverse repo this tool before and after the Spring Festival this year (February 2nd to February 6th), a total of 5 days put the liquidity of 340 billion. At that time, the central bank for a stable exchange rate considerations, did not take measures to reduce the quasi market liquidity, but the use of MLF and increase the reverse repo Kam相关的主题文章: