China Rate Swap Drops Most This Quarter Since 2008 as PBOC Eases
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China’s benchmark interest-rate swap dropped this quarter by the most in six years as the central bank stepped up monetary easing to combat an economic slowdown.
The People’s Bank of China implemented the most aggressive cuts in benchmark rates and lenders’ reserve requirements since 2008, while also injecting cash to banks using targeted lending facilities and money-market operations. In the past week alone, it resumed auctions of reverse-repurchase agreements, lowered its one-year lending and deposit rates and eased reserve requirements for some banks.