MNI BRIEF: PBOC To Cut 7-day Reverse Repo Rate By 10bp
May-07 01:17
PBOC+ 1
The People’s Bank of China will cut its seven-day reverse repurchase operation rate by 10 basis points, Governor Pan Gongsheng told reporters in a briefing on Wednesday.
The key policy rate will be reduced to 1.4% from 1.5%, the first cut since the PBOC reduced the rate 20bp on Sept 27, 2024. The move will guide down the loan prime rate by 10bp, Pan said.
As the basis for the PBOC’s policy rate system, lowering the seven-day repo rate will guide down the 14-day reverse repo, and the temporary repo and reverse repo rates as well as the loan prime rate. (See MNI PBOC WATCH: PBOC Seen Easing, Guiding LPR Lower, In Q2)
