BEIJING, May 8 (Xinhua) -- The People's Bank of China (PBOC), the country's central bank, on Thursday cut the rate for the seven-day reverse repos by 0.1 percentage points when injecting liquidity into the banking system.
On Thursday, the central bank conducted 158.6 billion yuan (about 22 billion U.S. dollars) of seven-day reverse repos at an interest rate of 1.4 percent, the PBOC said in a statement.
The rate was down from 1.5 percent a day earlier.
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.
The policy rate adjustment came following PBOC governor Pan Gongsheng announced a raft of supportive measures at a press conference on Wednesday, including policy rate and reserve requirement ratio cuts.
Pan said the policy rate reduction is expected to lead the loan prime rate, a market-based benchmark lending rate, down by 0.1 percentage points. ■
