The People's Bank of China (PBOC) is implementing a moderately accommodative monetary policy to support the economy, as evidenced by its recent actions to enhance liquidity in the financial markets. In December, the PBOC injected approximately $233 billion into the economy, utilizing new liquidity tools to bolster year-end operations. Additionally, the central bank has imposed penalties on three institutions for bond trading violations, reflecting its commitment to maintaining market order amid a bull trend in the interbank bond market. PBOC Governor Pan noted that while there is still room for monetary easing, the marginal effects of such measures are diminishing. The central bank's recent adjustments include a 10 basis point increase in the one-day repo rate to 1.4695%. The secured overnight financing rate decreased to 4.37% on December 30, down from 4.46% on December 27, while the effective federal funds rate remained steady at 4.33%. These measures indicate the PBOC's focus on ensuring ample liquidity within the banking system as it navigates rising interest rate risks.