China’s PBOC Lowers Reverse Repo Rates
Posted on 02/04/2020
The People’s Bank of China (PBOC) lowered the interest rates of reverse repurchase agreements. The central bank cut the 7- and 14-day reverse repo rates by 10 basis points to 2.4% and 2.55%, respectively.
Furthermore, PBOC injected 1.7 trillion yuan (US$ 242.74 billion) worth of liquidity through reverse repos into the financial system.
The Wuhan coronavirus outbreak impacted mainland China’s equity markets, helping wiping out US$ 393 billion in stock market capitalization on February 3, 2020.