MNI BRIEF: PBOC To Cut RRR and Key Rates From Sept 27
MNI (BEIJING ) - The People’s Bank of China cut the reserve requirement ratio by 50bps and 7-day reverse repurchase operation rate by 20bps on Friday, according to a statement on its website.
The RRR reduction, which excludes banking institutions already implementing a 5% RRR, adjusts the weighted average RRR to 6.6%.
The 7-day reverse repo rate is lowered to 1.5% from 1.7%, and remains the basis for establishing the 14-day reverse repo, temporary repo and reverse repo rates, the statement said.
The Bank stressed the easing moves were part of an accommodative stance and would strengthen policy efforts to support the economy.
Governor Pan Gongsheng unveiled stimulus measures on Tuesday aimed at boosting the economy, real estate sector, as well as the equity market. (see:MNI:More RRR Cuts Would Pave Way For China Bond Sales-Advisors)