China's central bank has lowered a short-term policy rate and pumped more liquidity into the financial system, as it continues efforts to help boost the economy.

The People's Bank of China cut the 14-day reverse repurchase interest rate by 10 basis points to 1.85%, and injected 74.5 billion yuan ($10.6 billion) of liquidity via the policy tool, it said on its website on Monday.

The latest cut is a reflection of the reduction in the 7-day reverse repo rate in July, during which the PBOC didn't conduct a 14-day reverse repo operation, said Zhiwei Zhang, an economist at Pinpoint Asset Management.

The central bank also injected CNY160.1 billion through 7-day reverse repo agreements, keeping the interest rate unchanged at 1.7%, it said Monday.

Last week, the PBOC unexpectedly held its benchmark lending rates steady, despite rising expectations for easing following the U.S. Federal Reserve's own rate cut.

Economists anticipate the Chinese central bank will lower its 7-day reverse repo rate--now seen as the key rate for pricing benchmark lending rates--in the coming months, as the Fed's cut gives it more room for monetary policy easing.

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