BEIJING -- China's central bank on Monday lowered the rate of its 14-day reverse repos by 10 basis points for the first time since June 2020, to maintain stable liquidity in the banking system ahead of the Spring Festival.

The People's Bank of China (PBOC) injected 150 billion yuan ($23.7 billion) worth of reverse repos into the market at an interest rate of 2.25 percent, compared with 2.35 percent in previous operations.

In line with market expectations, the move came amid the country's continuous efforts recently to lower companies' lending costs and further boost economic growth.

Last week, the PBOC cut the interest rates of its medium-term lending facility (MLF) loans and seven-day reverse repos by 10 basis points.

The country also lowered the one-year loan prime rate (LPR) by 10 basis points and the over-five-year LPR, on which many lenders base their mortgage rates, by 5 basis points on Jan 20 to enhance monetary policy support for the economy.

Analysts said the rate adjustment for 14-day reverse repos "follows the steps" of MLF and seven-day reverse repos as the reduction volumes are the same. The central bank resumed the 14-day reverse repo operation after an interval of one month, helping to stabilize liquidity and reduce fund fluctuations in the market during the holiday.

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.