China makes surprise rate cut to resist crisis
PBoC unexpectedly cuts the seven-day repo rate while injecting liquidity
China’s central bank unexpectedly slashed its seven-day reverse repo rate by 20 basis points today (March 30), suggesting a willingness to deploy larger-scale monetary stimulus to shore up the virus-hit economy.
The People’s Bank of China injected 50 billion yuan ($7 billion) into the interbank market via reverse repo on Monday morning, while lowering the rate to 2.2%, a rare move for the central bank.
The 20bp cut implies that the central bank is delivering stronger countercyclical measures
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