PBOC Governor Pan announces LPR 10 bps cut, RRR 50 bps cut and 7-day RR cut to 1.4%

Following a meeting with the People's Bank of China (PBOC), China Securities Regulatory Commission, National Financial Regulatory Authority, the Chinese central bank Governor Pan Gosheng announces interest rates cuts.

Key quotes

• The world is full of uncertainties.
• China financial system remains robust despite shocks.
• yuan rebounds against dollar after depreciation.
• Will cut policy rate by 10 bps.
• Will cut Reserve Requirement Ratio (RRR) by 50 bps.
• Seven-day Repo Rate (RR) to be cut to 1.4%, from 1.5%.
• Policy rate cut will lead to Loan Prime Rate (LPR) cut by 10 bps.
• RRR cut will release about CNY1 trillion in liquidity.
• Will set up 500bn Yuan in re-lending loans for elderly care and service consumption.