PBOC Cuts 7-Day-Reverse Repo Rate to 1.7%

2024-07-22 00:57 By Chusnul Chotimah 1 min. read

The People’s Bank of China (PB)C) slashed a key short-term policy rate for the first time since August 2023 to support economic growth while shifting toward a new policy benchmark.

The central bank launched a CNY 58.2 billion reverse repurchase operation into the banking system while lowering the seven-day reverse repo rate by 10bps to 1.7% from 1.8%.

The move aims to optimize the open market operation mechanism and increase financial support for the economy, the PBOC said in a statement Monday.

The decision came after official data released last week showed the GDP growth eased to 4.7% yoy in Q2 of 2024, the weakest since Q1 of 2023, while ahead of the loan prime rate (LPR) June fixing later today.



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