China c.bank lowers 14-day reverse repos rate

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. ($1 = 6.3341 Chinese yuan)

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. ($1 = 6.3341 Chinese yuan)