PBOC's latest liquidity pump tops 450 bln yuan

China's central bank injected 450 billion yuan into the market on Tuesday in a bid to stabilise short-term money market rates. This latest liquidity pump is the largest single-day injection on record, shattering the previous 395 billion yuan mark.

The People's Bank of China has steadily been injecting cash since last week in order to stabilise short-term rates, which often spike in the run-up to the Spring Festival holidays, which is just around the corner.

The short-term precision tool is what the central bank has been increasingly relying on to maintain short term liquidity and hold down interest rates as people flock to withdraw savings and cash during the holiday season.