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.