Two new tools to guide interest rates
China DailyA pedestrian walks past the headquarters of the PBOC in Beijing. JIANG QIMING/CHINA NEWS SERVICE The People's Bank of China, the country's central bank, has launched a pair of new tools to better guide market interest rates and ensure bond market stability, reinforcing its efforts to build a modern monetary policy system, experts said. This move came after Pan Gongsheng, governor of the PBOC, implied last month that the central bank will designate the seven-day reverse repo rate as the main policy rate benchmark and make efforts to narrow the interest rate corridor — a system that helps manage short-term interest rates in the economy. Wang said the new tools will narrow the interest rate corridor significantly from 245 basis points to 70 basis points and help stabilize expectations of short-term interest rates by setting 1.6 percent as the new lower limit for short-term market rates acceptable to the central bank and 2.3 percent as the upper limit. The central bank can use temporary repos to absorb excess liquidity and prevent market rates from dropping below 1.6 percent and use temporary reverse repos to keep market rates from exceeding 2.3 percent, he said.
History of this topic
China central bank is moving faster towards its policy limits
Live Mint
China still has further room for RRR, interest rate cuts
China Daily
China's Central Bank Cuts Key Interest Rates to Boost Economy
The Hindu
Rate cuts set to boost market confidence
China Daily
China's central bank cuts bank reserve rates, pledges other moves to help the economy
The Independent
China's central bank cuts bank reserve rates, pledges other moves to help the economy
Hindustan Times
PBOC hints at further cuts in the reserve requirement ratio
China Daily
Big banks cut deposit rates to strengthen sector stability
China Daily
China eases banks' reserve requirement to cement economic recovery
China Daily
China’s central bank eyes reserve ratio cut to boost lending
Live Mint
Central bank to take steps to bolster economy
China Daily
China signals caution on inflation despite COVID, Ukraine woes
Al Jazeera
China cuts benchmark rates to bolster flagging economy
Live Mint
China cuts interest rates to fight economic impact of zero-Covid policy
The Telegraph
China central bank cuts reserve requirement to boost slumping economy
CNN
China says it could do more to stimulate the economy after tiny rate cut
CNN
China interest rates cut to help companies as economy slows
CNNDiscover Related
)
)
