China’s Central Bank Eases Liquidity: Injects $33.29 Billion at Lower Rates

China's central bank injected 234.6 billion yuan into its banking system through open market operations, at lower interest rates. This move signals a continued effort to ease monetary conditions amidst deflationary pressures and sluggish economic growth. Analysts believe it is not a major policy easing, but further rate cuts are anticipated.

China's central bank injected 234.6 billion yuan ($33.29 billion) into the banking system through open market operations on Monday, in a bid to maintain adequate liquidity at lower interest rates.

The People's Bank of China (PBOC) offered funds through both 7-day and 14-day reverse repos at reduced rates, aimed at supporting the banking sector ahead of the National Day holidays starting Oct. 1.

While the move isn't seen as a significant change in policy, analysts expect further rate cuts in the coming months as China battles deflationary pressures and sluggish economic growth.

(With inputs from agencies.)