The People’s Bank of China pumped 5 billion yuan into the financial system through 7-day reverse repurchase agreements at a fixed interest rate of 1.40%, maintaining the rate that has served as the central bank’s primary policy benchmark throughout 2026.
After accounting for maturing instruments, the net liquidity injection came to roughly 4.5 billion yuan.
A small number with a big signal
The PBOC has kept its 7-day reverse repo rate pinned at 1.40% across multiple operations this year, making the rate effectively the floor for short-term borrowing costs in China’s interbank market.
Analysts have interpreted the pattern of small or even zero 7-day injections during recent weeks, particularly in August, as evidence that liquidity in the system is already adequate.
