PBoC injects CNY 235bn into economy, lowers 14-day repo rate
By Josh White
Date: Monday 23 Sep 2024
(Sharecast News) - The People's Bank of China injected around CNY 234.6bn (£25.05bn) into the banking system on Monday - the first such infusion in months - as it lowered the 14-day reverse repurchase rate.
According to Reuters, the PBoC conducted the injection through open market operations, aiming to maintain adequate liquidity in the banking sector as the quarter ends.
Specifically, it added CNY 160.1bn via seven-day reverse repos at an interest rate of 1.7% and CNY 74.5bn through 14-day reverse repos at a reduced rate of 1.85%, down from the previous 1.95%.
Analysts saw this operation as routine rather than a significant policy shift.
The use of 14-day repos typically supports the banking system during extended holiday periods, with the last similar injection occurring before the spring break in February.
Monday's actions precede the upcoming National Day holidays starting 1 October, aligning the 14-day repo rate with the already lowered seven-day rate set in July.
The move follows previous rate reductions in July, where both short-term and long-term benchmark lending rates were lowered in an attempt to stimulate economic activity.
Reporting by Josh White for Sharecast.com.
Special promo:
Trading the Forex Market? Visit FXmania.com to get advanced infomation about currencies and the Foreign Exchange
Market.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN