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Central bank continues net cash injection

China's central bank on Wednesday continued to pump money into the interbank market via reverse repos to ensure stable liquidity. The People's Bank of China conducted 160 billion yuan ($24 billion) of seven-day reverse repos with an interest rate of 2.45 percent, and 140 billion yuan of 14-day reverse repos with an interest rate of 2.6 percent. Offset by 30 billion yuan of maturing operations, the move resulted in a net injection of 270 billion yuan. The move is largely in response to spiking liquidity demand in October due to seasonal factors such as tax payments. In Wednesday's interbank market, the overnight Shanghai Interbank Offered Rate, which measures the cost at which banks lend to one another, dropped 0.43 basis points to 2.5960 percent.