PBOC cuts one-year MLF rates to 2.5% from 2.65%

Anil Panchal FXStreet

On Tuesday, China's central bank, the People’s Bank of China (PBOC), lowered the one-year Medium-term Lending Facility (MLF) rate to 2.50% from 2.65% previous.

It's worth noting that the PBoC also cuts the reverse repo rate to 1.8% from 1.9% previously.

Furthermore, the Chinese central bank also announces multiple reductions in the Standing Lending Facility rates (SLFs).

The PBOC announcements were beyond the market expectations and triggered the cautious optimism but failed to defend the Chinese Yuan (CNY).

Market reaction

USD/CNY is trading listlessly near 7.2285 on the above announcement.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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