China's central bank injects 120b yuan into market on May 27

China's central bank pumped cash into the banking system via reverse repos to maintain liquidity on May 27.

The People's Bank of China injected 120 billion yuan (about $16.8 billion) into the market through seven-day reverse repos at an interest rate of 2.2 percent.

The move aims to keep liquidity in the banking system at a reasonably sufficient level, according to a statement on the website of the central bank.

No reverse repos matured on May 27.

A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

China's central bank pledged in its first-quarter monetary policy report that it will step up counter-cyclical adjustments to support the real economy, make the prudent monetary policy more flexible and appropriate, and continue to deepen the reforms of the market-oriented interest rate and the yuan exchange rate formation system.