China Swap Rate Drops to Four-Year Low on Easing Speculation
This article is for subscribers only.
China’s one-year interest-rate swaps declined to the lowest in more than four years on speculation the central bank will ease policy further after cutting interest rates for the third time in six months.
The People’s Bank of China didn’t sell any repurchase or reverse-repurchase agreements Tuesday, halting open-market operations for a seventh session. The monetary authority lowered its one-year lending rate by 0.25 percentage point to 5.1 percent and the one-year savings rate by the same amount to 2.25 percent effective Monday. China is scheduled to release a slew of economic data for April, including on industrial output and credit growth, this week.