China's central bank continues to inject liquidity into market

BEIJING - China's central bank on Tuesday injected funds of 50 billion yuan ($7.31 billion) through open market operations to ease liquidity pressure.

The People's Bank of China (PBOC) said in a statement that it made the operations via seven-day reverse repos with an interest rate of 2.55 percent to offset the impacts from payment for new government bonds.

The move followed net liquidity injection of 120 billion yuan via the same financial instrument Monday. No previous reverse repos matured on Tuesday.

The PBOC will make policies more forward-looking, flexible and effective, maintain proper control over the floodgate of money supply and keep liquidity at a reasonable and abundant level, according to a quarterly report released earlier this month.

China's prudent monetary policy will be "kept neutral and be neither too tight nor too loose," said the report.