China”s Central Bank Lowers Reverse Repo Rate
Beijing, May 08 (QNA) – The People”s Bank of China (PBOC), the country”s central bank, on Thursday cut the rate for the seven-day reverse repos by 0.1% points when injecting liquidity into the banking system.
The central bank conducted 158.6 billion yuan (about $22 billion) of seven-day reverse repos at an interest rate of 1.4%, China”s (Xinhua) News Agency said, citing PBOC statement.
The rate was down from 1.5% a day earlier.
A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future. (QNA)
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