China c.bank offers 47.1b yuan off reverse repo

The People’s Bank of China (PBC) injected 47.1 billion yuan into the banking system on Monday through a seven-day reverse repo operation at an interest rate of 1.50 per cent.

The PBC reiterated its commitment to maintaining “adequate” and “reasonable” liquidity levels” in the financial system, aiming to support stable economic activity and smooth year-end financial operations.

Reverse repos, a key monetary policy instrument, involve the central bank purchasing securities from commercial banks through a bidding process, with an agreement to sell them back at a future date. This mechanism helps manage short-term liquidity needs and stabilise interbank lending rates.

Attribution: PBC