China central bank unexpectedly cuts rates to support economy

• China’s central bank unexpectedly cut key policy rates for the second time in three months on Tuesday, in a fresh sign that the authorities are ramping up monetary easing efforts to boost a sputtering economic recovery.
• Analysts said the move opened the door to a potential cut in China’s lending benchmark loan prime rate (LPR) next week.
• The People’s Bank of China (PBOC) said it lowered the rate on 401 billion yuan ($55.25 billion) worth of one-year, medium-term lending facility (MLF) loans to some financial institutions by 15 basis points to 2.50% from 2.65% previously.
• The central bank also injected 204 billion yuan through seven-day reverse repos while cutting borrowing costs by 10 basis points to 1.80% from 1.90% previously, it said in an online statement.

External Link : https://asia.nikkei.com/Economy/China-central-bank-unexpectedly-cuts-rates-to-support-economy