BEIJING — China’s central bank continued to inject funds into the market on Oct 23 to maintain liquidity.
The People’s Bank of China (PBOC) conducted 120 billion yuan (about $17.3 billion) of seven-day reverse repos at an interest rate of 2.55 percent, unchanged from the previous operation on Oct 22.
The move is aimed at offsetting the impact of such factors as tax payments and government bond issuance and keeping liquidity in the banking system at a reasonable and ample level, according to a PBOC statement.
A reverse repo is a process by which the central bank bids and buys securities from commercial banks with an agreement to sell them back in the future.
China will continue to implement a prudent and neutral monetary policy and properly deal with the relationship between stabilizing growth, deleveraging and strengthening regulatory control, according to a statement issued after a meeting of the financial stability and development committee under the State Council on Oct 19.