Dow Jones Newswires: China’s central bank cuts key policy rates

by | Aug 14, 2022 | Stock Market

China’s central bank on Monday cut key policy interest rates, a move that could provide more support to the cooling economy. The People’s Bank of China said it lowered interest rates of both one-year medium-term lending facility and seven-day reverse repurchase agreements by 10 basis points, while injecting liquidity via the two instruments.

The one-year MLF rate was lowered to 2.75% and the seven-day reverse repo rate was cut to 2.0%, the PBOC said. Monday’s cuts may lead to a lowering of China’s benchmark lending rates–the Loan Prime Rate–later this month as they rates are priced based on MLF rates. The central bank also injected 400 billion yuan ($59.3 billion) liquidity via the one-year MLF and CNY2 billion via seven-day reverse repos on Monday.

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