BEIJING – The People’s Bank of China (PBOC), the central bank, on Wednesday continued to pump cash into the financial system through open market operations to maintain liquidity in the market.
The PBOC conducted 100 billion yuan ($14 billion) of seven-day reverse repos, a liquidity-injecting process in which the central bank purchases securities from commercial banks through bidding with an agreement to sell them back in the future.
The interest rate for the operation remained at 2.55 percent, the PBOC said in a statement.
Wednesday’s operation is aimed at offsetting the impact of factors such as tax payments, according to the central bank.
No reverse repos matured on Wednesday.
China vowed to keep its prudent monetary policy “neither too tight nor too loose” and make counter-cyclical adjustments in a timely and moderate manner, the central bank said Friday in its second-quarter monetary policy report, adding the country will not resort to flood-like stimulus policies.