China central bank suspends cash injections

BEIJING — China's central bank on Wednesday suspended cash injections into the market as interbank liquidity remained stable.

The People's Bank of China (PBOC) conducted 210 billion yuan (about $30.6 billion) of reverse repos, which, offset by the same amount of maturing reverse repos, resulted in no cash pumped into or drained from the market.

The operations included 180 billion yuan of seven-day reverse repos priced to yield 2.45 percent, and 30 billion yuan of 14-day contracts with a yield of 2.6 percent, according to a PBOC statement.

Lending costs in China's interbank market remained low. The benchmark overnight Shanghai Interbank Offered Rate (Shibor), the cost at which Chinese banks lend to one another, rose by 3.55 basis points to 2.6365 percent on Wednesday.

China has set the tone of its monetary policy in 2017 as prudent and neutral, keeping an appropriate liquidity level but avoiding excessive liquidity injections.