China's central bank injects funds into market

The People's Bank of China (PBOC) is seen in this file photo taken on in Beijing. [Photo/Xinhua]

BEIJING - China's central bank on Tuesday pumped money into the interbank market via reverse repos to ensure stable liquidity.

The People's Bank of China (PBOC) conducted 100 billion yuan ($15 billion) of seven-day reverse repos with an interest rate of 2.45 percent, and 90 billion yuan of 14-day reverse repos with an interest rate of 2.6 percent.

Offset by 60 billion yuan of maturing operations, the move resulted in a net injection of 130 billion yuan.

In Tuesday's interbank market, the overnight Shanghai Interbank Offered Rate, which measures the cost at which banks lend to one another, rose 0.63 basis point to 2.6003 percent.

The PBOC's open market operations are closely watched by the market, as they have become major tools for the central bank in pursuing its monetary policy.

Such a policy stance is crucial for China as it has to juggle the task of financial deleveraging, aimed at defusing risk and curbing asset bubbles, while shoring up the economy.

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