PBoC cuts short-term interest rate to support economy
Analysts believe central bank may ease policy further as Chinese economy continues to struggle
China’s central bank cut a short-term policy interest rate for the first time since August 2022 today (June 13), in a surprise move.
It lowered the seven-day reverse repurchase rate by 10 basis points to 1.9%, injecting 2 billion yuan ($280 million) of liquidity into the financial system. In a statement, the People’s Bank of China cited the need to maintain “reasonable and sufficient” liquidity levels.
The rate cut comes after PBoC governor Yi Gang said last week that the PBoC would step up
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