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China's overnight repo rate falls to four-month low on ample liquidity

A woman walks past the headquarters of the People's Bank of China (PBOC), the central bank, in Beijing, China September 28, 2018. REUTERS/Jason Lee/Files

SHANGHAI (Reuters) - China’s benchmark overnight repo traded in the interbank market, considered one of the best indicators of general liquidity in China, fell to 1.04 percent early on Wednesday, its lowest level since Jan. 7.

The declines in the money rates were largely due to very ample liquidity in the banking system, traders said, while the central bank continued to inject small amounts of cash via its open market operations.

The People’s Bank of China injected 10 billion yuan $1.48 billion)through seven-day reverse repos on Wednesday, bringing the net injection so far this week to 50 billion yuan.

($1 = 6.7711 Chinese yuan renminbi)

Reporting by Winni Zhou and Andrew Galbraith; Editing by Kim Coghill