The People's Bank of China unexpectedly reduced its short-term borrowing rate on Tuesday and authorities are expected to add more stimulus in the days ahead by way of a cut to the benchmark lending rate as several economic indicators have revealed a sagging economy after the post-pandemic reopening turned out to be quite tepid.
The PBoC cut the seven-day reverse repo rate to 1.90 percent from 2.0 percent. This was the first lowering since a similar size reduction in August last year.
The reverse repo is the rate at which the central bank gives short-term liquidity to banks. The latest reduction injected CNY 2 billion, or $279.97 million, through seven-day repos.
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by Jyotsna V
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