Repeat credit crunch unlikely, PBOC-linked newspaper says

BEIJING - China is highly unlikely to see a mid-year liquidity crisis this year and there will be no repeat of the "unusual market fluctuations" seen in June 2013, a central bank-affiliated newspaper said during the weekend.

The Financial News - a publication of the People's Bank of China - dismissed fears of the reoccurring of a mid-year liquidity crunch in the wake of increases to deposit rates at a number of banks.

As China's monetary policy is currently "neither too tight nor too loose," overall liquidity conditions in the banking sector are good, it said in an editorial published on Saturday.