PBOC increases cash injections before holiday as repurchase rate rises

Hong Kong

CHINA'S central bank stepped up cash injections as a benchmark money-market rate climbed the most in seven weeks in the run-up to a week-long holiday.

The People's Bank of China (PBOC) added 80 billion yuan (S$18 billion) to the financial system on Thursday using 14-day reverse-repurchase agreements, double the 40 billion yuan supplied via seven-day contracts a week ago. Open-market operations injected a net 40 billion yuan for the week. The tenor of reverse repos auctioned was changed as China's financial markets will be closed Oct 1-7 for the National Day holiday.