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China's central bank skips cash injections for 6th day

Xinhua | Updated: 2019-05-05 11:11
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The People's Bank of China headquarters in Beijing, Aug 3, 2018. [Photo/IC]

BEIJING - China's central bank has suspended pumping cash into the monetary market for six consecutive work days.

The People's Bank of China (PBOC), the central bank, on Sunday announced the decision to skip reverse repos in a terse statement, saying the interbank liquidity was at a relatively high level.

A reverse repo is a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

China's monetary policy should be "neither too loose nor too tight," while liquidity will be kept at a reasonable and ample level, according to a statement issued after a quarterly meeting of the PBOC monetary policy committee in April.

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