China central bank expects banking system liquidity to rise further from current level

SHANGHAI (Reuters) - China’s central bank said on Thursday that it expects liquidity in the banking system to increase further from current levels.

The remarks were made by the People’s Bank of China (PBOC) after it injected 100 billion yuan ($15.43 billion) via reverse bond repurchase agreements in open market operations. [CN/MMT]

Thursday’s cash injection was to counter factors including maturing reverse repos in order to stabilise cash conditions at the end of June, the PBOC said in a statement on its website.

“Considering central bank’s interest payment on reserves to financial institutions and fiscal expenditure towards the month-end, total liquidity in the banking system will rise further,” the PBOC said.

Reporting by Winni Zhou and Andrew Galbraith; Editing by Shri Navaratnam