China to cut policy rate by 0.1 pp from May 8

07 May '25

1 min read

China to cut policy rate by 0.1 pp from May 8

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Insights

China's central bank will cut the rate for the seven-day reverse repos by 0.1 percentage point (pp) from tomorrow.
The rate will be 1.4 per cent post adjustment.
The move is aimed at better implementing the moderately-loose monetary policy and enhance support for the real economy, the bank said.
Starting tomorrow, the interest rates for the standing lending facility will also be reduced by 0.1 pp.

China's central bank will cut the rate for the seven-day reverse repos by 0.1 percentage point (pp) from tomorrow. The rate will be 1.4 per cent post adjustment.

The move is aimed at better implementing the moderately-loose monetary policy and enhance support for the real economy, the People's Bank of China (PBOC) said in a statement.

A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

Starting tomorrow, the interest rates for the standing lending facility (SLF) will also be reduced by 0.1 pp, a state-controlled news agency reported citing the central bank.

The overnight, seven-day and one-month SLF rates will be lowered to 2.25 per cent, 2.4 per cent and 2.75 per cent respectively.

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