PBC reverse repurchase twice in a row   

央行罕见连施巨量"逆回购" 中国再迎"降准"敏感点

中国央行3日在公开市场上实施了总规模达1430亿元人民币的逆回购操作，这也是央行两周来连续第二次“大手笔”。市场分析人士称，此举“历史罕见”，是为“引水入流”，缓解银行体系资金紧张的局面。预期认为，中国在7月将再度迎来下调存款准备金的敏感时点。

Beijing (CNS) -- The People's Bank of China on Tuesday implemented a reverse repurchase open market operation for 143 billion yuan (US$22.53 billion) of bonds, the second time in half a month.

This is the fourth and largest amount of reverse repurchase within the year. The last time, on June 26, PBC put 95 billion yuan (US$14.97 billion) into the market this way.

It is rare for the PBC to make this sort of move repeatedly in what is admittedly a short period of time, but necessary, market insiders insist. The liquidity of China's banking system took a steep plunge due to a sharp slowdown of funds outstanding on foreign exchanges.

Many an institution predict that the PBC is likely to lower the deposit reserve ratio in late July to put yet more money on the market, the fourth regulation downwards since November.

China should turn to a stable and loose monetary policy, suggested the international finance institution, the Bank of China, in their report, adding that the trend will continue into the second half of the year with one to two reserve requirement ratio decreases.