China’s central bank faces tricky balance, to support liquidity; The People’s Bank of China has taken steps to ease financial conditions after interbank rates doubled in the second half of the year, reflecting the challenge it faces in navigating a return to normal monetary conditions, reported the Financial Times.The central bank supplied more liquidity than the market anticipated in mid-December via its medium-term lending facility, through which it provides one-year loans to the banking system. The scale of a reverse repo operation in late December — another way of injecting cash into the system — also exceeded expectations, analysts said
