China’s key money rate hits near 2-year low, but softening seen fleeting.
Liquidity conditions in China’s interbank money markets eased further on Tuesday, as cash supply far outpaced demand, despite a huge withdrawal of funds by the central bank.
Key rates dropped, with the volume-weighted average price of the overnight repo traded in the interbank market falling below the threshold of 1% for the first time in two months to 0.8532%, its lowest since Jan. 6 last year.
