Economic Buzz: China Lowers 14-day Reverse Repo Rate

20 Sep 2022 , 01:07 PM

Chinas central bank conducted a reverse repo operation at a lower rate on Monday in order to improve liquidity in the financial system, the latest move in a series of measures undertaken to support a slowing economy. The Peoples Bank of China injected CNY 10 billion via 14-day reverse repos at an interest rate of 2.15 percent compared to the previous 2.25 percent. The bank also conducted CNY 2 billion 7-day reverse repo operations at an unchanged rate of 2.00 percent. The PBoC said the move aims to maintain stable liquidity in the banking system. In August, the central bank had cut the medium-term lending facility rate, and also its five-year loan prime rate to reduce the interest burden of existing loans.Powered by Commodity Insights