PBOC Deputy Governor Zou Lan: Short-Term Rates Better Gauge Than Operation Volumes

China's central bank deputy governor Zou Lan said on July 15 that the People's Bank of China (PBOC) will consider multiple factors to arrange open market operations, sometimes draining and sometimes injecting liquidity, to keep total liquidity at an appropriate level and promote short-term rates running smoothly around the policy rate, according to 36Kr. Zou stated that the volume of a single operation serves the need for overall liquidity management and should not be used to judge the central bank's policy stance, adding that short-term market interest rates are a more suitable observation indicator than the PBOC's operation volumes.