China's central bank on Thursday injected liquidity into the banking system through operations of medium-term lending facility (MLF) and reverse repos.

The People's Bank of China injected 237 billion yuan ($33.15 billion) into the market through one-year MLF with an interest rate of 2.65 percent.

The MLF tool, introduced in 2014, helps commercial and policy banks maintain liquidity by allowing them to borrow from the central bank using securities as collateral.

The central bank also conducted seven-day reverse repos worth 2 billion yuan at an interest rate of 1.9 percent.

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.

The move is aimed at keeping liquidity reasonably ample in the banking system to fully satisfy the needs of financial institutions, according to the central bank.

Lowering MLF operating interest rate signals a policy of strengthening counter-cyclical adjustment and supporting the real economy, which will prompt financial institutions to continue to benefit the real economy on the asset side, said Bruce Pang, chief economist and head of research at JLL Greater China.

This move will also promote the steady reduction in real loan interest rates, financing cost of enterprises, and personal consumption credit cost, which will further stabilize investment, boost consumption and development confidence, stimulate the vitality of market players, and create a suitable monetary and financial environment for the upward, stable and healthy development of the economy, he added.

(With inputs from Xinhua; cover image via CFP)