China’s central bank cut interest rates on Monday, a move that could provide further support to the slowing economy.
The People’s Bank of China said it has cut interest rates by 10 basis points on both one-year medium-term credit facilities and seven-day reverse repurchase agreements, while injecting liquidity through the two instruments.
The one-year MLF rate was cut to 2.75% and the seven-day reverse repo rate to 2.0%, the PBOC said.
Monday’s cuts could result in a cut in China’s key lending rate — the Loan Prime Rate — later this month as its prices are based on MLF rates.
The central bank also injected 400 billion yuan ($59.3 billion) of liquidity via the one-year MLF and CNY 2 billion via seven-day reverse repos on Monday.
https://www.marketwatch.com/story/china-s-central-bank-cuts-key-policy-rates-271660527832?rss=1&siteid=rss The Chinese central bank cuts interest rates