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China’s central bank on Wednesday made its biggest daily net cash injection via reverse repo operations on record, more evidence that authorities are shifting to policy easing to counter a slowdown in the world’s second largest economy.
The People’s Bank of China said the injection was to maintain “reasonably ample” liquidity in the banking system.
It attributed the generous liquidity support to the current peak period for tax payments, adding that “the banking system’s overall liquidity is falling rapidly”, according to a statement on its website.