China central bank lowers 14-day reverse repos rate

KEY POINTS

• China's central bank lowered the funding cost of 14-day reverse repos when injecting 150 billion yuan ($23.68 billion) via the liquidity tool into the banking system on Monday.
• The 14-day reverse repo rate was lowered by 10 basis points to 2.25% from 2.35% previously.
• The People's Bank of China (PBOC), in an online statement, said the liquidity offerings were to "maintain stable liquidity ahead of the Lunar New Year."

The People's Bank of China (PBOC) in Beijing, China, on Monday, Dec. 13, 2021.

Andrea Verdelli | Bloomberg | Getty Images

China's central bank lowered the funding cost of 14-day reverse repos when injecting 150 billion yuan ($23.68 billion) via the liquidity tool into the banking system on Monday.

The 14-day reverse repo rate was lowered by 10 basis points to 2.25% from 2.35% previously.

The People's Bank of China (PBOC), in an online statement, said the liquidity offerings were to "maintain stable liquidity ahead of the Lunar New Year."

The week-long holiday starts on Jan. 31.

The reduction to the interest rate of 14-day reverse repos was not a surprise, traders said, after the PBOC lowered a slew of key short- and medium-term rates last week.