SHANGHAI, Nov 12 (Reuters) - The Shanghai Interbank Offered Rate (SHIBOR) for the overnight tenor rose to 2.521% on Thursday, the highest since Jan. 17.
The volume-weighted average of the benchmark repo for the same tenor traded in the interbank market also rose to a near 10-month high of 2.522% as of 0306 GMT.
Rising overnight borrowing rates in China’s interbank market this week reflect tightening cash conditions as the economy rapidly recovers, giving the central bank room for a more flexible approach to monetary policy, traders and analysts said.
Reporting by Winni Zhou and Andrew Galbraith; Editing by Jacqueline Wong
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