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MNI BRIEF: PBOC Announces Cut to Key Policy Rate And RRR

MNI (Singapore)
(MNI) Beijing

The PBOC has revealed significant easing.

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The People’s Bank of China will cut its 7-day reverse repo rate by 20 basis points to 1.5% and the reserve requirement rate by 50bp to support the economy, Governor Pan Gongsheng told reporters on Tuesday.

The 7-day rate cut will also guide down the Loan Prime Rate by 20bp and MLF by 30bp, representing the first reduction since July when the Bank reduced the key rate by 10bp, Pan said. The RRR cut will unlock CNY1 trillion of long-term liquidity into the interbank market, and is also the first cut since February when the Bank reduced the rate 50bp, he continued.

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The People’s Bank of China will cut its 7-day reverse repo rate by 20 basis points to 1.5% and the reserve requirement rate by 50bp to support the economy, Governor Pan Gongsheng told reporters on Tuesday.

The 7-day rate cut will also guide down the Loan Prime Rate by 20bp and MLF by 30bp, representing the first reduction since July when the Bank reduced the key rate by 10bp, Pan said. The RRR cut will unlock CNY1 trillion of long-term liquidity into the interbank market, and is also the first cut since February when the Bank reduced the rate 50bp, he continued.

Keep reading...Show less