China money rates steady as outflow eases, crunch may lie ahead

SHANGHAI, April 8 (Reuters) – China’s primary money rates were steady this week, indicating relatively loose liquidity in the banking system, but there are concerns that borrowing costs will rise when companies submit first-quarter tax payments, while a massive amount of medium-term liquidity tools will mature. Money market rates have calmed recently helped by signs that the pace of capital outflows is slowing. China’s foreign exchange reserves surprisingly rose in March, the first monthly g

China money rates steady as outflow eases, crunch may lie ahead

SHANGHAI, April 8 (Reuters) – China’s primary money rates were steady this week, indicating relatively loose liquidity in the banking system, but there are concerns that borrowing costs will rise when companies submit first-quarter tax payments, while a massive amount of medium-term liquidity tools will mature. Money market rates have calmed recently helped by signs that the pace of capital outflows is slowing. China’s foreign exchange reserves surprisingly rose in March, the first monthly g