China's swap rate has climbed to a three-month high, reflecting a worsening cash crunch as the central bank refrains from easing lenders' reserve requirements.

The 14-day repurchase rate, a gauge of interbank funding availability, jumped the most in almost two months even as the central bank injected 90 billion yuan ($14 billion) into the financial system using reverse-repurchase agreements. Reports last week showed banks extended the fewest new loans in July since September, while gains in industrial output, retail sales and exports slowed. The inflation rate fell to a 30-month low and Premier Wen Jiabao said on Wednesday there is scope to adjust monetary policy.

"There is disappointment from the lack of policy action since the weak economic data released last week," said Pin Ru Tan, a Hong Kong-based rates strategist at HSBC Securities Asia Ltd.

China Daily-Agencies