The People's Bank of China (PBOC) put funds into circulation for three weeks in succession, leading to a big fall in the inter-bank bond repurchase rate, and experts said the benchmark interest rate was likely to be raised, the China Business News reported.

According to the paper, PBOC issued central bank bills totaling 100 billion yuan ($15.5 billion) since July 18, and a net increase of 44 billion yuan this week.

In response, China's inter-bank bond repurchase rate had fallen, and the overnight rate had fallen below three percent.

The paper quoted analysts as saying that performances of both first and secondary markets showed that the benchmark interest rate was expected to increase.