The People’s Bank of China injected 500 million yuan (approximately $69 million) into the financial system through 7-day reverse repurchase agreements at a fixed rate of 1.40%. This modest amount, for the world’s second-largest economy, signals that interbank liquidity is sufficient and that the central bank sees no reason to alter its operations. The 7-day rate, held steady at 1.40%, remains the primary indicator of the institution’s « moderately loose » monetary stance. The central bank also introduced overnight reverse repo operations on June 29, 2026 at a rate of 1.25%, providing a complementary tool to manage end-of-month and quarter-end cash crunches. For sophisticated market participants, the maturity calendar of previous repos proves more decisive than the headline injection amount when assessing the actual liquidity effect.
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