News

#Dow Jones Newswires: China’s central bank cuts key policy rates

Table of Contents

“Dow Jones Newswires: China’s central bank cuts key policy rates”

China’s central bank on Monday cut key policy interest rates, a move that could provide more support to the cooling economy.

The People’s Bank of China said it lowered interest rates of both one-year medium-term lending facility and seven-day reverse repurchase agreements by 10 basis points, while injecting liquidity via the two instruments.

The one-year MLF rate was lowered to 2.75% and the seven-day reverse repo rate was cut to 2.0%, the PBOC said.

Monday’s cuts may lead to a lowering of China’s benchmark lending rates–the Loan Prime Rate–later this month as they rates are priced based on MLF rates.

The central bank also injected 400 billion yuan ($59.3 billion) liquidity via the one-year MLF and CNY2 billion via seven-day reverse repos on Monday.

Dow Jones Newswires

If you liked the article, do not forget to share it with your friends. Follow us on Google News too, click on the star and choose us from your favorites.