Central Bank Pumps $42 Billion Into Chinese Economy
In the latest in a series of interventions aimed at sparking the domestic economy,The People's Bank of China this week injected 265 billion yuan ($42 billion) into the nation's banking system. This took the form of reverse repurchase agreements (also known as reverse repos, or RPs), a common type of short-term financing vehicle for banks.
All told, the central bank has delivered over 2.4 trillion yuan ($379 billion) in assistance facilities since June.
IMF estimates for 2012 growth in China were cut recently, to 7.8%. Meanwhile, the economy is showing pronounced signs of softness in key areas such as construction, industrial production, and factory output.
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