SHANGHAI (Reuters – China’s central banks will replenish liquidity in time for the Lunar New Year holidays, according to China Securities Journal.

According to the newspaper, The People’s Bank of China will increase cash injections via open market operations in the banking system starting the second half of January. This is done to satisfy rising cash demand from households and companies ahead of the holiday that begins Jan. 31.

The newspaper stated that “many financial institutions are certain the central bank will keep reasonably ample liquidity” and would likely use a variety of policy tools, including reverse repose and medium-term loan facility (MLF) in order to satisfy reasonable funding needs and smooth over the Lunar New Year holiday.

Markets have agreed to higher liquidity offers towards the holiday but analysts and market participants remain split on the question of whether or not the central bank will reduce the interest rate for its medium-term loans facility (MLF).

China cut its benchmark lending prime rate (LPR), in December, for the first time since 20 months. However it is still wary about loosening conditions on the highly leveraged country’s property market.