China's Central Bank Follows Fed's Dovish Move, Cuts Key Short-Term Rates, Injects Over $10B To Boost Economy
China's Central Bank Follows Fed's Dovish Move, Cuts Key Short-Term Rates, Injects Over $10B To Boost Economy
Last week, the PBOC unexpectedly kept its benchmark lending rates steady, despite rising expectations for easing following the U.S. Federal Reserve's rate cut.China's central bank has taken significant steps to support the economy by reducing a key short-term interest rate and injecting substantial liquidity into the financial system.
中国的央行采取了重要措施，通过降低短期利率和向金融系统注入大量流动性来支持经济。
What Happened: The People's Bank of China cut the 14-day reverse repurchase interest rate by 10 basis points to 1.85% and injected 74.5 billion yuan ($10.6 billion) of liquidity via this policy tool, according to its website.
根据中国人民银行的网站，中国人民银行将14天期逆回购利率降低10个基点至1.85%，并通过这一政策工具注入了745亿人民币（106亿美元）的流动性。
Additionally, the central bank injected 160.1 billion yuan ( $10.6 billion) through 7-day reverse repo agreements, maintaining the interest rate at 1.7%, the bank stated on Monday.
此外，央行通过7天逆回购协议注入了1601亿人民币（106亿美元），并将利率维持在1.7%，该银行在周一表示。
Last week, the PBOC unexpectedly kept its benchmark lending rates steady, despite rising expectations for easing following the U.S. Federal Reserve's rate cut.
尽管市场普遍预期美联储降息，但中国人民银行上周意外决定维持其基准贷款利率的稳定。
Why It Matters: The recent actions by the People's Bank of China come amid a global trend of monetary policy adjustments. On Thursday, the Bank of Japan opted to maintain its benchmark interest rate at 0.25%, diverging from the U.S. Federal Reserve's 50 basis point cut.
中国人民银行最近的举措与全球货币政策调整趋势相吻合。上周四，日本银行选择将基准利率维持在0.25%，与美联储50个基点的降息路线不同。
On Friday, a portfolio manager noted that the Federal Reserve's rate cut could drive investors away from money market funds and into longer duration bonds.
上周五，一位投资组合经理指出，美联储降息可能会导致投资者从货币市场基金转向较长期的债券。
Additionally, Federal Reserve Governor Michelle W. Bowman defended her decision to support a smaller 25-basis-point rate cut, citing ongoing inflation concerns. This marked a historic moment as it was the first time since 2005 that a Fed governor openly disagreed with a rate decision.
此外，美联储行长Michelle W. Bowman为自己支持降息25个基点的决定进行辩护，称持续存在通胀担忧。这是历史性的一刻，这是自2005年以来美联储行长首次公开不同意降息决定。
Image Via Shutterstock
图片来自Shutterstock。
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
这个故事是使用Benzinga Neuro生成的，并由Kaustubh Bagalkote编辑