Beijing, Feb 7 (IANS): China's central bank suspended open market operations for a third-straight trading day on Tuesday, according to an official statement.

The People's Bank of China (PBOC) withdrew 120 billion yuan ($17 billion) from the market, as 120 billion yuan of reverse repurchase agreements (repos) matured, Xinhua news agency reported.

Reverse repos is a process by which central banks purchase securities from banks with an agreement to sell them back in the future.

"Liquidity in the banking system remains at a relatively high level. To maintain stable liquidity, the central bank will not conduct reverse repos Tuesday," the statement on the PBOC's website said.

The move came after the central bank raised the interest rate on open market operation reverse repos by 10 basis points on February 3.

It also raised the lending rates on its standing lending facility (SLF) short-term loans.

Analysts said such moves reinforced the view that the authorities are committed to containing capital outflows and reining in financial risks, as the economy stabilises in an uncertain environment.

China reported 6.7 per cent economic growth in 2016, lower than in recent years but within the target range.

China has set the tune of its monetary policy in 2017 as prudent and neutral, keeping an appropriate liquidity level but also avoiding excessive liquidity injections.