PBoC unexpectedly cuts key interest rate

MLF rate’s 20bp reduction is largest decrease since 2020

People’s Bank of China

The People’s Bank of China (PBoC) unexpectedly cut a key medium-term interest rate today (July 25) by the largest margin since April 2020, just three days after it lowered a suite of interest rates.

The PBoC cut its one-year medium-lending facility lending (MLF) rate by 20 basis points to 2.3% and offered 200 billion yuan ($27.7 billion) worth of MLF loans to financial institutions, it said in a statement.

On July 22 the bank announced 10bp cuts to its seven-day reverse repurchase rate, one-year

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