Pakistan, June 26 -- China's central bank said it will debut overnight lending next week, offering reverse-repos to banks and brokers as it deepens control over what have been volatile short-term interest rates.

The People's Bank of China plans to inject cash into the banking system on June 29 and 30 - the month-end, when seasonal demand tends to spike - using the newly-created overnight reverse-repos in order to "better meet short-term liquidity needs". The tool's debut follows an announcement last week by Governor Pan Gongsheng that the bank intended to introduce overnight repos to improve control over very short-dated rates. The PBOC did not say if the overnight reverse repos would be used regularly but some analysts think the introdu...