PBoC Maintains Liquidity Support Before Month-End

The People's Bank of China (PBoC) injected CNY 806.5 billion into the banking system through reverse repo operations on Wednesday, July 29, 2026, to maintain ample liquidity at month-end. The central bank supplied CNY 206.5 billion via seven-day reverse repos at an unchanged interest rate of 1.40%, while adding another CNY 600 billion through overnight reverse repos without disclosing the borrowing cost. The move followed the PBoC's announcement last week that it would conduct overnight reverse repo operations from July 29 to 31 and again on August 3, injecting a total of CNY 2.1 trillion through the short-term liquidity tool. The operations reflect the central bank's continued efforts to stabilize money market conditions and ensure sufficient cash in the banking system during a period of typically elevated funding demand at the end of the month.

The People's Bank of China (PBoC) injected CNY 69.5 billion through seven-day reverse repos on Tuesday, while keeping the interest rate unchanged at 1.4%, according to an official statement. The central bank also conducted overnight reverse repo operations for a second straight day, offering CNY 600 billion to financial institutions, though it did not disclose the borrowing cost. The PBoC introduced the overnight liquidity tool on Monday, with the interest rate set at 1.25%, according to Reuters.

The People's Bank of China (PBoC) injected CNY 157.5 billion through seven-day reverse repos on Monday, while keeping the borrowing cost unchanged at a record low of 1.4%, with the rate serving as China's primary policy rate. The decision signaled that the central bank remains committed to an accommodative monetary stance to support the economy. In a new move, the central bank also launched overnight reverse repo operations, offering CNY 300 billion to financial institutions to provide greater flexibility in managing short-term liquidity and smoothing funding conditions in the interbank market. The central bank did not reveal the borrowing cost of its new liquidity tool, though Reuters reported policymakers had set the rate at 1.25%. The introduction of the tool comes as authorities seek to refine their liquidity management framework, ensuring ample cash in the banking system while maintaining stable money market rates.