The People’s Bank of China (PBOC) for the first time since August 2022 reduced the rate of short-term borrowing in an effort to support the slow-down restoration of the Chinese economy after the pandemia Covid-19.
According to PBOC, the interest rate on seven -day reverse repo operations was reduced by 10 basic points, to 1.90 percent from 2.00 percent earlier.
, within the framework of seven -day operations of the reverse repo, banks were granted 2 billion yuan ($ 279.7 million).
So far, the Central Bank of the second largest world economy softens the money-credit policy to support growth, other leading central banks, such as the US Federal Reserve (Fed), the European Central Bank (ECB) and the Bank of England (BEE), increase interest rates against the background of inflation.
Analysts states that a reduction in the rate on seven -day reverse repo operations may be a sign of a change in medium -term and long -term interest rates in the coming months in China, where the economy has not restored the expected pace, despite the abolition of quarantine restrictions.