PBoC Maintains Liquidity Support Before Month-End

The People’s Bank of China (PBoC) injected CNY 806.5 billion into the banking system through reverse repo operations on Wednesday, July 29, 2026, to maintain ample liquidity at month-end. The central bank supplied CNY 206.5 billion via seven-day reverse repos at an unchanged interest rate of 1.40%, while adding another CNY 600 billion through overnight reverse repos without disclosing the borrowing cost. The move followed the PBoC’s announcement last week that it would conduct overnight reverse repo operations from July 29 to 31 and again on August 3, injecting a total of CNY 2.1 trillion through the short-term liquidity tool. The operations reflect the central bank’s continued efforts to stabilize money market conditions and ensure sufficient cash in the banking system during a period of typically elevated funding demand at the end of the month.





