China cuts reverse repo rate by 10 basis points to maintain liquidity
Xinhua
24 Jan 2022, 21:05 GMT+10
BEIJING, Jan. 24 (Xinhua) -- China's central bank on Monday lowered the rate of its 14-day reverse repos by 10 basis points for the first time since June 2020, to maintain stable liquidity in the banking system ahead of the Spring Festival.
The People's Bank of China (PBOC) injected 150 billion yuan (23.7 billion U.S. dollars) worth of reverse repos into the market at an interest rate of 2.25 percent, compared with 2.35 percent in previous operations.
In line with market expectations, the move came amid the country's continuous efforts recently to lower companies' lending costs and further boost economic growth.
Last week, the PBOC cut the interest rates of its medium-term lending facility (MLF) loans and seven-day reverse repos by 10 basis points.
The country also lowered the one-year loan prime rate (LPR) by 10 basis points and the over-five-year LPR, on which many lenders base their mortgage rates, by 5 basis points on Jan. 20 to enhance monetary policy support for the economy.
Analysts said the rate adjustment for 14-day reverse repos "follows the steps" of MLF and seven-day reverse repos as the reduction volumes are the same. The central bank resumed the 14-day reverse repo operation after an interval of one month, helping to stabilize liquidity and reduce fund fluctuations in the market during the holiday.
A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.
Subscribe and Follow
Get a daily dose of Kansas City Post news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
News RELEASES
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Kansas City Post.
More Information
59
℉
US Senate to vote on resolution urging probe of beef price fixing
WASHINGTON D.C.: U.S. senators Elizabeth Warren and Mike Rounds have introduced a bipartisan resolution requesting the Federal Trade Commission (FTC) ...
Strain of Ukraine war causes Russian defense spending to increase 40%
MOSCOW, Russia: According to preliminary data released by the finance ministry this week, almost three months after Moscow's invasion of ...
After China bows out, new decision expected on Asian Cup host
KUALA LUMPUR, Malaysia: After China's decision to not host the 2023 Asian Cup, a choice for a new host will ...
Strong support for Taiwan to attend WHO meeting this week
GENEVA, Switzerland: The World Health Organization (WHO) has received a proposal by 13 member states requesting that Taiwan be allowed ...
EU heads tell Ukraine military supplies will continue
BRUSSELS, Belgium: European Union foreign policy chief Josep Borrell has said that the bloc would ensure Ukraine that it has ...
Bush laments "wholly unjustified and brutal invasion"
Former U.S. President George W. Bush has made an embarrassing mistake in criticizing Russian President Vladimir Putin over his decision ...
Recession feared by as UK faces highest inflation in 40 years
LONDON, England: UK prices are rising at their fastest rate in 40 years, as higher energy bills are changing spending ...
Target reports profits down 52%, shares down 25%
MINNEAPOLIS, Minnesota: Amidst the rising costs of essentials, such as fuel and food, and the rapid return by consumers to ...
German Allianz pays $6 billion in fraud case, officials plead guilty
WASHINGTON D.C.: After its U.S. asset management unit pleaded guilty to criminal securities fraud after the collapse of a group ...
Court rules unconstitutional California law requiring women on boards
SACRAMENTO, California: In another blow to the state's push to diversify corporate leadership, a California court judge has ruled that ...
Nepal confirms African swine fever outbreak
KATHMANDU, Nepal - According to the World Organization for Animal Health (OIE), Nepal has reported its first cases of African ...
U.S. stocks turmoil evaporates in final hour of trading, major indices unscathed
NEW YORK, New York - U.S. stock markets reversed sharp losses in late trading to eke out minor gains in ...
