(ATF) China’s central bank Tuesday pumped cash into the banking system via reverse repos to maintain liquidity.
The People's Bank of China (PBoC) injected 80 billion yuan ($11.5bn) into the market through seven-day reverse repos at an interest rate of 2.2%, according to a statement on the website of the central bank.
The move was intended to maintain stable liquidity in the banking system, the PBoC said.
With 10bn yuan of reverse repos maturing Tuesday, the operation led to a net injection of 70 billion yuan into the market.
The PBoC is taking a cautious approach to stimulating China’s economy arguing that growth has returned and that additional boosts may create market instability.
It is concentrating instead on keeping liquidity adequate to fund the private sector, which it aims to provide the engine for further economic growth.