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The People's Bank of China pumped 41 billion yuan into the money market this week through its open market operations.
The central bank sold 11 billion yuan of three-month bills, and conducted 70 billion yuan worth of repurchase agreements on Thursday. Offsetting the 166 billion yuan of bills and repurchase agreements reaching maturity this week, the central bank realized a net injection of more than 40 billion yuan into the market. This move has ended a four-week stretch of money tightening.
Analysts say the shift by the central bank, from money absorption to injection in the open market operations, indicates a fine tuning of monetary policy. However, it's predicted that under a stable macro policy, it's less likely the central bank would sharply tighten or loosen its monetary policy in the coming months.
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