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.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s