Central bank makes a big move before the holiday! Overnight reverse repo cap soars to 1 trillion yuan, MLF net injection 200 billion yuanwhat signal does this send?

On September 23, the central bank announced that, to better match the short-term liquidity needs of the banking system, it will conduct overnight reverse repo operations from September 28 to October 8, using a fixed-rate, quantity-based tender, with a daily operation amount not exceeding 1 trillion yuan. On September 24, it will conduct an 80 billion yuan MLF operation through a fixed-quantity, rate-based tender with multiple-price bidding, with a term of 1 year, to keep liquidity in the banking system ample.