(Yicai Global) Nov. 19 -- The People's Bank of China injected some CNY120 billion (USD17 billion) into the country's financial system this morning, making the second net injection for the second straight trading day.

The central bank conducted seven-day reverse repos to the tune of CNY120 billion, while no existing reverse repos were scheduled to mature.

The bid rate for the reverse repos was 2.5 percent, the same as yesterday when the bank cut the interest rate by 5 basis points, marking the reduction in more than four years.

PBOC injected CNY180 billion into the monetary system via seven-day reverse repos yesterday, using the tool for the first time in 15 trading days. It had conducted two medium-tern lending facilities during that time, adding cash specifically for regional commercial banks to lend to businesses in small cities and rural areas. The bank had unexpected cut rates for one-year MLFs by 5 basis points to 3.25 on Nov. 5.

The central bank is determined to maintain a prudent monetary policy stance but will make slight adjustments based on economic growth and price levels to prevent "a divergence of inflation expectations," it said in its quarterly reported on Nov. 16. This policy must remain stable as China continues to be one of the few major economies leaning toward a "normal" monetary policy, it added.