China cuts rates, injects liquidity as mainland markets sink

The People’s Bank of China added a net 150 billion yuan ($21.4 billion) of funds on Monday using 7-day and 14-day reverse repurchase agreements. The rate for both was cut by 10 basis points, driving down the cost of the money to "ensure ample liquidity during the special period of virus control, ” it said in a statement. PBOC adviser Ma Jun indicated he expects further rate cuts later in the month.

HONG KONG: China’s central bank took its first concrete steps to cushion the economy and plunging markets from the blow of a spreading new virus, providing short-term funding to banks and cutting the interest rate it charges for the money.

The People’s Bank of China added a net 150 billion yuan ($21.4 billion) of funds on Monday using 7-day and 14-day reverse repurchase agreements. The rate for both was cut by 10 basis points, driving down the cost of the money to "ensure ample liquidity during the special period of virus control, ” it said in a statement. PBOC adviser Ma Jun indicated he expects further rate cuts later in the month.