The central bank cut the interest rate of 180 billion yuan reverse repurchase operation by 5 basis points.
Xinhua News Agency, Beijing, 18 Nov (Reporter Zhang Qianqian and Wu Yu) the people's Bank of China launched a reverse repurchase operation of 180 billion yuan in the form of interest rate bidding on the 18th, and the winning interest rate was cut by five basis points to 2.5 percent. On the same day, no reverse repurchase expired, the central bank achieved a net investment of 180 billion yuan.
The central bank said in an announcement that it launched a reverse repurchase operation of 180 billion yuan on the same day for a period of seven days, with a winning interest rate of 2.5%, 5 basis points lower than before.
Wen Bin, chief researcher at Minsheng Bank of China, believes that the reduction in reverse repo rates is a manifestation of the central bank's strengthening of counter-cyclical regulation. Superimposed on the 600 billion yuan medium-term lending launched in November to facilitate (MLF) operations, the central bank through a combination of long-term and short-term policy tools to ensure reasonable liquidity.
On that day, the interbank market except for the seven-day term interest rate downward, the other term interest rates have gone up. The Shanghai Interbank offered rate ((Shibor)) released on the 18th showed that the overnight interest rate was 2.707%, 1.4 basis points higher than the previous trading day, and the 7-day interest rate was 2.728%, 0.9 basis points lower than the previous trading day. The 14-day interest rate was 2.826%, up 8.4 basis points from the previous trading day, and the one-year interest rate was 3.119%, 0.3 basis points higher than the previous trading day.