China cuts key lending rate to revive flagging economy

One- and five-year prime rates reduced days after anticlimactic third plenum

20240422 pboc

The People's Bank of China building in Beijing. The central bank is deploying monetary policy tools to drive growth and shore up faith in the economy. © Reuters

GRACE LI, Nikkei staff writer

HONG KONG -- China's central bank on Monday cut a key interest rate to boost business and consumer confidence amid shaky growth.

The People's Bank of China trimmed down the policy interest rate on 7-day reverse purchase agreements, known as reverse repo, to 1.7%, from 1.8%, aiming to "step up financial support for the real economy."

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