China Liquidity Injections Via Reverse Repo

The People’s Bank of China injected a total of CNY 200 billion of seven-day reverse repos at an interest rate of 2.2% for a 5th straight day on October 29th 2021, aiming to offset the impact of tax peaks and government bond issuance payments and to keep liquidity stable. Since October 20th, the PBoC injected a net CNY 940 billion into the banking system, the most since January 2020, in a sign that policymakers are willing to support growth and keep liquidity stable for companies to cope with corporate tax payments and local debt issuances, without necessarily easing monetary policy.