China slashes rate, pumps $7bn into market to counter virusThe global spread of the coronavirus has dampened hope of a quick recovery in export-dependent China, where the pandemic first erupted in December. The People's Bank of China (PBoC) said it launched a 50-billion-yuan reverse repurchase operation on Monday and lowered the seven-day reverse repurchase rate from 2.40% to 2.20%. It was the "largest cut since 2015 and takes the 7-day reverse repo rate to its lowest on record", said Julian Evans-Pritchard, senior China economist at Capital Economics. ANZ Research economists Xing Zhaopeng and Raymond Yeung said in a note that the PBoC's rate cut "is intended to lower Chinese corporates’ funding costs". They expect it will be followed by cuts in the medium term lending facility rates and loan prime rate.
Source: Bangkok Post March 30, 2020 05:37 UTC