PBOC cut reverse repo rate by most in five years to boost economy hit by coronavirus

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

Chinese central bank unexpectedly cut the interest rate on reverse repurchase agreements by 20 basis points on Monday, the biggest cut in almost five years, in a move to ramp up efforts to offset the impact on an economy from the coronavirus outbreak.

The People’s Bank of China (PBOC) lowered the 7-day reverse repo rate to 2.20 per cent from 2.40 per cent previously.

The PBOC injected 50 billion yuan into money markets through seven-day reverse repos, breaking a hiatus of 29 trading days with no fresh fund injections.