The People’s Bank of China injected 5 billion yuan into the financial system through 7-day reverse repurchase agreements at a fixed rate of 1.40%, which remains the central bank’s primary policy benchmark for 2026. Net liquidity injection stood at approximately 4.5 billion yuan after accounting for maturing instruments. In late June 2026, the PBOC also introduced overnight reverse repo operations at 1.25%, sitting 15 basis points below the 7-day rate, to better manage very short-term cash crunches. The steady rate reflects an uneven post-pandemic recovery, with persistent weakness in the property sector and subdued consumer spending offsetting strength in manufacturing and exports.
Source: Read the original article
