Central bank injects liquidity into market

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BEIJING: China’s central bank on September 16 continued to pump cash into the banking system via reverse repos to maintain liquidity.
The People’s Bank of China injected 120 billion yuan ($17.7 billion) into the market through seven-day reverse repos at an interest rate of 2.2 percent, according to a statement on the website of the central bank.
The move was intended to maintain reasonable and ample liquidity in the banking system, the central bank said. A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future. China pursues a prudent monetary policy in a more flexible and appropriate way, according to this year’s government work report. – Agencies