China Central Bank Lowers 14-Day Reverse Repos Rate with 12bln Cash Injection

The People’s Bank of China (PBOC) on Monday lowered the borrowing cost of 14-day reverse repos while stepping up cash injection of 2 billion yuan ($286.54 million) through 7-day reverse repos and another 10 billion yuan through the 14-day tenor as a countermeasure to higher demand towards the end of the third quarter.

The Chinese central bank resumed its 14-day short-term liquidity operations for the first time since late January, while dropping the interest rate on the liquidity tool by 10 basis points to 2.15% from 2.25%.