China’s central bank cuts seven-day reverse repo rate to help economy By Reuters

SHANGHAI (Reuters) – China’s central bank said on Friday it would cut the cost of borrowing for its seven-day reverse repurchase agreements, part of the biggest post-pandemic stimulus package Beijing unveiled this week to support the economy .

The People’s Bank of China said the rate would be cut by 20 basis points to 1.50 percent from 1.70 percent previously, according to an online statement, effective Friday.

The rate cut decision aims to “further strengthen the countercyclical adjustment of monetary policy and support stable economic growth,” the PBOC said.

Borrowing costs for 14-day reverse repos, temporary repos and reverse repos would be adjusted by the same margin, it added.

The PBOC last cut the cost of borrowing the short-term liquidity tool by 10 basis points in July.