The People's Bank of China has no intention of cutting banks' reserve requirements in the short term, as suggested by a cash injection last week, according to a commentary in the central bank newspaper Financial News.

Reverse-repurchase operations have become the central bank's "very important and favored" monetary-adjustment instrument, according to an opinion piece. Using that tool instead of lowering the reserve requirement ratio can meet funding demands without pushing up property prices, it said.

The one-year interest-rate swap rate rose to its highest level in three months on Monday and Chinese mainland stocks fell on concern the central bank won't lower the ratio even after export growth almost stalled in July and new yuan loans slowed. The central bank has cut the ratio three times since November, most recently in May, and reduced interest rates in June and July.

China Daily-Agencies