(Yicai Global) May 28 -- China’s interbank interest rates moved in both directions today, with short-term rates moving lower after the central bank inject more cash into the monetary system via open market operations.

The overnight Shanghai Interbank Offered Rate fell 0.50 basis points to 2.0970 percent after beginning to slide yesterday. The one-week rate also slipped 2.80 bips to 2.1510 percent to end an upward streak started May 19.

The two-week SHIBOR continue to rise, jumping 7.80 bips to 1.9250 percent, while the rate for three-month loans climbed 2.3 bips to 1.4530 percent.

The People’s Bank of China added a total CNY670 billion (USD93.7 billion) via seven-day reverse repos this week, after a 37 day hiatus.

The move aims to offset the impact of several factors, including government bond issuance and corporate income tax settlements, while keeping the banking system's liquidity at a sufficient level, the central bank said.

The SHIBOR is a simple, no-guarantee, wholesale interest rate calculated by arithmetically averaging all the interbank yuan lending rates offered by the price quotation group of 18 commercial banks with a high credit rating, with the four highest and four lowest quotations excluded.

Editor: James Boynton