The People's Bank of China moved to ease the economy further on Wednesday, saying it will inject 140 billion yuan ($21.80 billion) into the financial system through a short-term liquidity adjustment (SLO) operation. The SLO loans come with a 2.3% interest rate. Short-term liquidity operations were launched by the PBOC in 2013 to reduce fluctuations in liquidity and stabilize interbank funding costs. Wednesday's move comes a day after the Chinese central bank cut its benchmark interest rates and lowered the reserve-requirement ratio for banks in the wake of recent stock-market turmoil in the country. However, Tuesday's interest-rate cuts failed to revive the Chinese equity market, with the Shanghai Composite Index closing 1.3% lower.
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