China’s central bank, the People’s Bank of China has cut key policy interest rates by 10 basis points on Monday.
The move is read as bearish as it aims to help the country’s economic recovery.
The central bank said that it conducted RMB400 billion in medium-term lending (MLF) facility operations at an interest rate of 2.75 percent, down from 2.85 percent a month earlier, on Monday.
The MLF interest rate is used as a policy benchmark for one-year interest rates.
PBOC said it also lowered the interest rate of seven-day reverse repos from 2.1 percent to 2 percent in its RMB2 billion worth of reverse repo operations on Monday, fully satisfying financial institutions’ needs.
