(Yicai Global) March 15 -- For the first time, the People's Bank of China provided a detailed explanation immediately following one of its moves, an indication the bank is improving information transparency.
A few hours after of the US Federal Reserve Bank announced a rate hike, China's central government injected a large amount of money into the market to smooth out the hike's impact. PBOC made a disclosure at 9.45 a.m., leaving no time for speculators to manipulate market prices with rumors.
In the past, the bank would typically make info public several hours after the market closed.
The PBOC shot CNY383 billion into the market through reverse repurchase and medium-term lending facility arrangements, but the bid rate still rose 10 basis points.
Market-based bidding activities between the bank and counterparties caused the rate increase. The increase was dictated by changes in supply and demand in the Chinese and global markets and should not regarded as a rate hike, the bank stressed.
As China continues to open up and the yuan becomes more internationalized, the PBOC has become one of the most visible central banks in the world. Investors monitor its every move, meaning its openness about information plays an important role in stabilizing expectations.
The PBOC has released info and data on its website and through social media in recent years. It has over three million follows on Weibo, a popular Chinese microblogging website.