Translation. Region: Russian Federal
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
BEIJING, May 7 (Xinhua) — China’s central bank said on Wednesday it would cut its seven-day reverse repo rate by 0.1 percentage point on Thursday.
Thus, the interest rate will be reduced to 1.4 percent, the People’s Bank of China said in a statement.
The move is aimed at more effectively implementing a “moderately soft” monetary policy and strengthening support for the real sector of the economy, the bank said in a statement.
A reverse repo is a process in which the central bank purchases securities from commercial banks at auction with an agreement to sell them back at a later date.
On Thursday, interest rates under the standing credit facility (SLF) will also be cut by 0.1 percentage points.
According to China’s central bank, overnight deposit rates for seven days and one month will be cut to 2.25 percent, 2.4 percent and 2.75 percent, respectively.
The PBOC’s statement came after its governor Pan Gongsheng told a news conference that the central bank would develop a package of monetary policy measures to strengthen macroeconomic control, including cutting the key interest rate and reserve requirement ratio.
A 0.1 percent cut in the key policy rate is expected to lead to a 0.1 percentage point reduction in the prime lending rate (LPR), he said. -0-