China’s central bank unexpectedly lowered the interest rates on reverse repurchase agreements by 10 basis points on Monday, as authorities stepped up measures to relieve pressure on the economy from a rapidly spreading virus outbreak.
The PBOC said on its website that it was lowering the seven-day reverse repo rate to 2.40 per cent from 2.50 per cent, and cutting the 14-day tenor to 2.55 per cent from 2.65 per cent. The cut came as Chinese financial markets reopened after an extended Lunar New Year holiday, when the death toll from the virus and number of infections had climbed sharply. On Monday, the PBOC also injected a total of $173.81 billion into money markets through reverse bond repurchase agreements.