China Money Rate Drops to 2-Week Low as Reserve Cut Takes Effect
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China’s money-market rate declined to the lowest level in two weeks on speculation the cash supply will improve following a cut in banks’ reserve requirements.
The seven-day repurchase rate, which measures interbank funding availability, fell for a second day after the central bank’s second reduction in the amount of cash lenders must set aside took effect on Feb. 24. The People’s Bank of China gauged demand for three-month bill sales planned for this week, according to a trader at a primary dealer required to bid at the auctions.