China central bank cuts short-term borrowing costs

PBoC cut its seven-day reverse repo rate by 10 basis points to 1.90% from 2%. — Reuters

SHANGHAI: China’s central bank lowered a short-term lending rate for the first time in 10 months yesterday, in a bid to restore market confidence and prop up a stalling post-pandemic recovery in the world’s second-largest economy.

Recent economic data has shown subdued demand and weaker investor sentiment, raising expectations that authorities will ease monetary policy to sustain growth.