China’s Cash Squeeze Eases Amid Retreating Short Term Rates

China’s cash squeeze showed first signs of easing with short term rates retreating amid the central bank initiating steps to each the cash shortage, according to The Wall Street Journal. China’s short term interest rates peaked recently to a record high. Some analysts feel the People’s Bank of China’s recent initiatives may not be adequate as the banks start raising money to meet their urgent quarter-end reserve requirement ratio. On Friday, China’s central bank, People’s Bank of China, asked lending banks to release more funds to enhance liquidity in the system. People’s Bank of China infused over 50 billion yuan ($8.2…