Source: Sharecast
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.