SHANGHAI, Aug 15 Reuters China39;s central bank injected cash through a shortterm bond instrument on Thursday and said that it would conduct a mediumterm loan rollover later this month.

The People39;s Bank of China39;s PBOC delivered a series of interest rate reductions last month and the sequence of the cuts showed its framework had changed, market watchers said, shifting the shortterm rate to being the main signal guiding markets.

On Thursday, the PBOC said it lent 577.7 billion yuan 80.9 billion through sevenday reverse bond repurchase agreements at 1.7 in an open market operation, unchanged from previously.

It added that the cash injection was meant to counteract factors including maturing mediumterm lending facility MLF loans, tax payments and government bond issuance, in order to keep banking system liquidity reasonably ample, according to an online statement.

While a batch of 401 billion yuan worth of MLF loans is set to expire on Thursday, the PBOC said it would conduct the rollover on Aug 26.

In response to Reuters request for comment on whether the PBOC would shift the timing of the monthly MLF operation to 25th, the central bank said future arrangements would be subject to the actual operation time.

The central bank has informed primary dealers of the arrangement and reminded them to utilise the sevenday reverse repo operation on Thursday to smooth the liquidity gap between MLF maturing day and rollover, the PBOC told Reuters.

This would be consistent…