The People’s Bank of China (PBOC) has reduced reverse repo rates during a mass liquidity injection to stem the economic impacts of the novel coronavirus.
On 3 February PBOC injected 1.2 trillion yuan (approx. USD$173 billion) into the Chinese banking system via reverse repo operations employing interest rate auctions.
This included 900 billion yuan in 7-day reverse repos and 300 billion yuan in 14-day reverse repos.
In a public announcement PBOC indicated that it had reduced the 7-day reverse repo rate to 2.4% from 2.5%, and the 14-day reverse repo rate to 2.55% from 2.65%, for a 10% trim across the board.
PBOC said that its open market operations were for the purpose of ensuring ample liquidity levels during efforts to combat the novel coronavirus.
Related stories
Chinese Central Bank to Inject 1.2 Trillion Yuan via OMO on 3 February