Economics
PBOC Eases Policy Via Repos as Rate Liberalization Shifts Focus
- Seven-day reverse-repo rate cut for first time since August
- Benchmark money-market rate declines along with swaps
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China cut borrowing costs on seven-day reverse-repurchase agreements used to add funds to the banking system for the first time since August as it seeks to revive growth in the world’s second-largest economy.
Tuesday’s move follows last week’s reductions in benchmark interest rates and in the amount of cash banks must set aside as reserves after data showed third-quarter economic growth was the slowest in more than six years. The People’s Bank of China also removed a cap on what lenders can pay savers on Friday.