(MENAFN- Kuwait News Agency (KUNA)) The People's Bank of China, the country's central bank, on Tuesday pumped massive liquidity into the interbank market through open market operations, state-run Xinhua News Agency reported.
The central bank injected a record high of CNY 395 billion (USD 62.7 billion) into the financial system via reverse repos in order to ease a cash squeeze at the end of the month, the central bank said in a statement carried by Xinhua.
It conducted seven-day reverse repos worth CNY 290 billion and offered CNY 105 billion in 14-day contracts. Bid interest rates remain stable at 3.35 percent and 3.6 percent, respectively, the statement said.
Shi Lei, an analyst at Ping'an Securities, said the central bank's massive repo injection demonstrates its intention to stabilize market rates and bring them down to its target range. The central bank prefers reverse repos over reserve requirement ratio cuts when easing money supplies to prevent a rebound in housing and commodity prices, the report added.
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