China central bank conducts overnight reverse repos again, keeps rate at 1.25pc, sources say

China's central bank conducted its overnight reverse repo operations again on Tuesday, setting the borrowing cost unchanged at 1.25 percent, people with knowledge of the matter said.

The People's Bank of China (PBOC) injected 600 billion yuan (HK$692.68 billion) through the overnight reverse repos in open market operations on Tuesday, doubling the amount of cash it injected during the liquidity tool's debut a day earlier.

The rate was 15 basis points below the seven-day reverse repo rate of 1.4 percent, which currently serves as the country's primary policy rate.

Tuesday's liquidity injection should help financial institutions tide over the month-end, when they typically need to shore up cash positions.

All the sources spoke on condition of anonymity as they are not authorised to discuss the topic. The PBOC did not immediately respond to Reuters request for comment.

Reuters

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