China cuts rates, provides medium-term funds to banks to counter coronavirus impact

The People’s Bank of China offered 200 billion yuan ($29 billion) of one-year medium-term loans on Monday.

China provided medium-term funding to banks and cut the interest rate it charges for the money as officials seek to cushion the economy from the virus epidemic.

To cushion the economy from virus epidemic, China provided medium-term funding to banks and cut the interest rate it charges for the money. (Reuters image)

The People’s Bank of China offered 200 billion yuan ($29 billion) of one-year medium-term loans on Monday. The rate was lowered by 10 basis points, driving down the cost of the money. The central bank also added 100 billion yuan of funds with 7-day reverse repurchase agreements. /Some 1 trillion yuan of reverse repos come due Monday, resulting in a net 700 billion yuan withdrawal.

Last week, China vowed it would meet its 2020 economic targets and allowed local governments to issue more debt in the near term to aid growth.