China’s central bank injected a record Rmb570bn ($84bn) into the country’s banking system via open market operations on Wednesday, the latest effort to boost liquidity and promote increased lending to a slowing economy.
Credit and money-supply data released late on Tuesday showed that lending through both bank and non-bank channels remained sluggish in December, despite a series of easing measures in recent months, including a cut to banks’ required reserve ratio (RRR) in early January. That move will eventually inject a net Rmb800bn into the banking system.
The People’s Bank of China injected Rmb350bn via seven-day reverse bond repurchase agreements on Wednesday and an additional Rmb220bn via 28-day reverse repos, the PBoC said in an online statement. The Rmb570bn injection was the largest ever using reverse repos.