MNI: PBOC Cuts Repo Rate by 5 Bps, First in Almost 4 Years

     BEIJING (MNI) - The People's Bank of China (PBOC) lowered the 14-day

reverse repo rate to 2.65% from 2.70% on Wednesday, according to a statement on

its website. This was the first cut to the 14-day interbank rate since the 30

bps cut on Feb 2, 2016, according to data from Wind Information. 

     - The PBOC injected CNY50 billion of 7-day reverse repos and CNY150 billion

of 14-day reverse repos today, adding net CNY200 billion in liquidity as no

reverse repos mature, according to Wind Information. 

     - The PBOC will pay close attention to the market liquidity situation,

conduct flexible open market operations, and maintain stable liquidity at the

end of the year, the central bank said on its website.

     - The 7-day weighted average interbank repo rate for depository

institutions (DR007) rose to 2.5921% at 9:54 a.m. local time from the close of

2.5672% on Tuesday: Wind Information.

     - The CFETS-NEX money-market sentiment index closed at 41 on Tuesday vs 48

on Monday. A lower index indicates reduced market expectations for tighter

liquidity.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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