The People’s Bank of China has cut the seven-day reverse repo rate. It is used to inject funds into the banking system. The last time the PBC reduced this figure four years ago.
It became known that the rate had decreased by 0.05% (from 2.55% to 2.5%). Immediately after the rate change, the People’s Bank of China injected $ 26 billion (180 billion yuan) into the financial system through repo operations.
By the way, in November the National Bank has already reduced the rate. Then it was a rate issued under the medium-term lending facility (MLF) loans. The decrease has also amounted to 0.05% (from 3.3% to 3.25%).
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group