China’s central bank says it will cut reserve requirements and interest rates By Reuters

BEIJING (Reuters) – China’s central bank will cut banks’ reserve requirement ratio by 50 basis points and cut key interest rates further to support a price recovery, its governor Pan Gongsheng said on Tuesday.

Pan, speaking at a news conference alongside officials from two other financial regulatory agencies, said the seven-day repo rate would be cut by 0.2 percentage points to 1.5 percent and that deposits and other interest rates would was also decreasing.

Interest rates on existing mortgages will also be cut by 0.5 percentage points on average, Pan said, in a move that could provide some relief to households but raise concerns about banks’ profitability.

Pan did not specify when the moves would take effect.

Stocks rallied and opened at their strongest level since May 2023. Ten-year bond yields fell to 2%.