PBOC lowers reverse repurchase interest rate; prospect of easing strengthens
2015/03/17 11:21

The People's Bank of China conducted the 7-day reverse repurchase operations totaling $20 billion on Tuesday and cut the interest rate by 10 bps compared with last time. Industry insiders said the central bank's downside adjustment to the repo rate reveals a clear intention of guiding the fund rate down. In order to achieve this goal, supported policies are needed. As the monetary base gap still exists, easing policies such as RRR cut could be ahead.