SHANGHAI (Reuters) -China’s central bank said on Friday it was lowering the borrowing cost of its seven-day reverse repurchase agreements, part of the biggest stimulus package since the pandemic, which Beijing unveiled this week to support the economy.
The People’s Bank of China said the rate would be lowered by 20 basis points to 1.50% from 1.70% earlier, according to an online statement, taking effect from Friday.
The rate cut decision aims to “further strengthen counter-cyclical adjustment of monetary policy and support stable growth of the economy”, the PBOC said.
Borrowing costs of 14-day reverse repos, temporary repos and reverse repos would be adjusted by the same margin, it added.
The PBOC last lowered the borrowing cost of the short-term liquidity tool by 10 basis points in July.
(Reporting by Beijing and Shanghai Newsroom; Editing by Himani Sarkar and Clarence Fernandez)
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