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.
中國的央行採取了重要措施，通過降低短期利率和向金融系統注入大量流動性來支持經濟。
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.
根據中國人民銀行的網站，中國人民銀行將14天期逆回購利率降低10個點子至1.85%，並通過這一政策工具注入了745億人民幣（106億美元）的流動性。
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，央行通過7天逆回購協議注入了1601億人民幣（106億美元），並將利率維持在1.7%，該銀行在週一表示。
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.
儘管市場普遍預期聯儲局減息，但中國人民銀行上週意外決定維持其基準貸款利率的穩定。
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.
中國人民銀行最近的舉措與全球貨幣政策調整趨勢相吻合。上週四，日本銀行選擇將基準利率維持在0.25%，與聯儲局50個點子的減息路線不同。
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.
上週五，一位投資組合經理指出，聯儲局減息可能會導致投資者從貨幣市場基金轉向較長期的債券。
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，聯儲局行長Michelle W. Bowman爲自己支持減息25個點子的決定進行辯護，稱持續存在通脹擔憂。這是歷史性的一刻，這是自2005年以來聯儲局行長首次公開不同意減息決定。
Image Via Shutterstock
圖片來自Shutterstock。
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
這個故事是使用Benzinga Neuro生成的，並由Kaustubh Bagalkote編輯