Amid cash crunch, China's central bank points to more flexible monetary policy

06/23/2013 | Bloomberg

For the first time in months, China's central bank suggested it is open to a loosening of monetary policy, a welcome indication for banks currently dealing with a cash squeeze. That situation was somewhat relieved Friday, after the seven-day repurchase rate briefly reached its highest level since at least 2003. The People's Bank of China has been keeping a tight rein on money supply to stem illegal inflows of capital and minimize the risk posed by China's rapidly growing shadow banking system.

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