BEIJING, March 11 (Xinhua) — China’s central bank suspended reverse repos for the eighth straight day on Monday as the liquidity remained stable in the monetary market.
The People’s Bank of China announced the decision in a statement, saying that the interbank liquidity was at a reasonable and ample level. No reverse repo was due on Monday.
The overnight Shanghai Interbank Offered Rate, which measures the borrowing cost of banks, rose 4.5 basis points to 2.09 percent Monday.
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 will keep its prudent monetary policy “neither too tight nor too loose” while maintaining market liquidity at a reasonable and ample level in 2019, according to the annual Central Economic Work Conference held last year.