KONTAN.CO.ID - SHANGHAI. China's central bank on Thursday cut the rate on 14-day reverse repurchase agreements, as it resumed the use of the liquidity tool for the first time since February.

The People's Bank of China (PBOC) said in a statement that it had injected 70 billion yuan (US$ 9.88 billion) into the country's money market through 14-day reverse repurchase agreements, at a rate of 2.35%, down from 2.55% previously.

The bank also injected 50 billion yuan through 7-day reverse repos at 2.2%, unchanged from the previous injection.

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In its statement, the bank said the injections were intended to safeguard stable liquidity conditions at the end of the first half of the year.

With 80 billion yuan in reverse repos maturing Thursday, the PBOC injected a net 40 billion yuan (US$ 5.65 billion) on the day, according to Reuters calculations.

It was the first 14-day reverse repo injection since Feb. 10. (US$ 1 = 7.0840 Chinese yuan renminbi)

Editor: Anna Suci Perwitasari