Beijing – China’s central bank has pumped $5b into the banking system to ease concerns over a credit squeeze that has caused rising interest rates.The People’s Bank of China did not explain its actions, but over the last few days there has been growing concern over the availability of credit. That has been reflected in the interest rates banks charge each other. On Monday one important benchmark rate rose to its highest level since June, the height of China’s credit crunch. The seven-day bond repurchase rate hit 8.93 per cent but fell back to 6.56 per cent after the central bank intervened.
