September 23, 2024 02:54 GMT
MNI BRIEF: PBOC Cuts 14-day Reverse Repo Rate By 10bp
MNI (BEIJING )
MNI reported that the central bank will increase its easing moves later this year to boost credit demand and lower funding costs as the economy is facing stronger headwinds and the Federal Reserve’s rate cut reduces pressure on the yuan and capital outflow. (See MNI: Fed Cut To Help PBOC Ease, Yuan Strengthen)
The People’s Bank of China eased the 14-day reverse repo rate by 10bps to 1.85% on Monday, the first reduction since January 2023, following the 7-day reverse repo rate cut in July, according to a statement on the PBOC’s website
The Bank said the interest rate for the 14-day reverse repo was 15 basis points higher than that of the 7-day reverse repo in open market operations. It was the first time the Bank restarted its 14-day reverse repo since Feb 9 in a bid to “maintain sufficient liquidity in the banking system at the end of the quarter”.
MNI reported that the central bank will increase its easing moves later this year to boost credit demand and lower funding costs as the economy is facing stronger headwinds and the Federal Reserve’s rate cut reduces pressure on the yuan and capital outflow. (See MNI: Fed Cut To Help PBOC Ease, Yuan Strengthen)
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