Central bank injects money
China’s central bank conducted cash injections via open market operations, to ease liquidity on Thursday. The People’s Bank of China conducted 60 billion yuan ($8.9 billion) of seven-day reverse repos, at an interest rate of 2.45 percent. The injection saw a net 20 billion yuan in cash pumped into the market on Thursday, offset by 40 billion yuan in maturing reverse repos. In Thursday’s interbank market, the overnight Shanghai Interbank Offered Rate, which measures the cost at which banks lend to one another, rose 6.1 basis points to 2.786 percent. The central bank has increasingly relied on open-market operations for liquidity, rather than cuts in interest rates or reserve requirement ratios, to maintain prudent monetary policy.