(Yicai Global) April 10 --  China's central bank has withdrawn from open market operations for over  two weeks in a row, causing interbank interest rates to ascend.

The People's Bank of China  has stopped selling or buying government securities from other lenders  for the 15th day, saying that the liquidity in the system is at a  "relatively high level." Interest rates began to move higher on the  interbank market today, led by short-term rates.

No reverse repurchase  agreements will reach maturity during the day, which should buoy  liquidity. The central bank usually buys reverse repos from commercial  lenders and promises to sell them back on a specified date at a higher  price, which represents a kind of a loan.

China will continue to  adopt a prudent monetary policy that will be eased or tightened to the  right degree, PBOC's Governor Yi Gang said last month.

"Although we no longer use  the term 'neutral,' the essence of our prudent monetary policy has not  changed," Yi said, adding that increases in M2 money supply and total  social financing should be in keeping with the nation's nominal GDP  growth. M2 includes cash and checking deposits.

Editor: Emmi Laine