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Anonymous ID: 5287e4 April 14, 2020, 7:50 p.m. No.8798306   🗄️.is 🔗kun

China Adds Cash to Banking System, Cuts Interest Rate on Loans

 

China’s central bank cut interest rates and injected $14 billion into the financial system, bolstering measures aimed at countering the economic fallout from the coronavirus pandemic. The People’s Bank of China offered 100 billion yuan via the one-year medium-term lending facility, cutting the rate to 2.95% from 3.15%. Though there were no loans coming due Wednesday, some 200 billion yuan will mature on Friday. The central bank refrained from injecting liquidity with short-term reverse repurchase agreements for a 10th straight day. The move follows the PBOC’s surprise announcement earlier this month that it will cut the interest rate it pays on banks’ excess reserves and reduce the amount of cash that selected lenders need to hold. The latter, the first phase of which is effective from Wednesday, will free up about 400 billion yuan of liquidity in the financial system.

https://www.bloomberg.com/news/articles/2020-04-15/china-adds-cash-to-banking-system-cuts-interest-rate-on-loans