The Chinese central bank has announced a reduction to the rates for reloans and rediscounts that were first introduced earlier in the year to help deal with the economic impacts of COVID-19.
The People’s Bank of China (PBOC) has reduced the rates for rural-support reloads and small business report reloads by 0.25 percentage points starting from 1 July 2020.
Following the reduction the 3-month rate will be 1.95%, the 6-month rate will be 2.15% and the 1-year rate will be 2.25%.
The rediscount rate will also be reduced by 0.25 percentage points to 2%.
PBOC also announced that it would reduce the financial stability reload rate by 0.5 percentage points to 1.75%. The financial testability reloan (extension period) rate will fall to 3.77%.