People’s Bank of China injects $7b to revive economy
People’s Bank of China injects $7b
People’s Bank of China(PBoC) on Monday cut interest rate on loans to banks by the largest margin in five years, to help the world’s second-largest economy weather the effects of coronavirus.
The bank also injected 50 billion yuan ($7 billion) into the financial system.
PBoC said it launched a 50-billion-yuan reverse repurchase operation and lowered the seven-day reverse repurchase rate from 2.40 percent to 2.20 percent.
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.
The deadly coronavirus has claimed almost 34,000 lives worldwide, hitting businesses and consumers.