The People's Bank of China (PBoC) unveiled an asymmetric cut in its one-year lending and deposit rates, reducing its key lending rate by 31 basis points to 6% and its deposit rate by 25bp to 3%, effective from July 6. The PBoC said it will also further reduce the lower band of its lending rate from 0.8 times to 0.7 times, but this is not applicable for mortgage rates.
The move surprised most market watchers as the PBoC had already adjusted its floating band for lending and deposit rates, and cut
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