China cuts loan prime rates, key short-term rate to support economy

The People’s Bank of China lowered the seven-day reverse repo rate by 10 basis points to 1.7 per cent on Monday, in a move to increase financial support for the real economy.

China’s central bank also announced 10 basis points cuts for both the one-year and five-year loan prime rates.

Zhang Zhiwei, president and chief economist at Pinpoint Asset Management, said that more rate cuts are expected after the US Federal Reserve enters a rate cut cycle.