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PBOC slashes bank rates to stimulate economy

PBOC slashes bank rates to stimulate economy

While China seems to be recovering faster than other major economies, the People Bank of China decided to cut bank rates to stimulate the economy after the hard hit of the coronavirus outbreak.

The PBOC opted to cut its seven-day reverse repo rate to 2.2 percent from 2.4 percent, easing monetary policy by making the strongest cut in five years.

By charging lenders lower interest rate on short-term loans, the Chines central bank aim to support the banking sector, which in turn should help affected firms.

Out of 81,470 coronavirus cases in China, 75,700 managed to recover, noting that it has lately added 31 new cases and 4 deaths.

The onshore yuan was 0.03 percent up at 7.0923 per dollar, as of 08:11 GMT.

China CSI 300 index fell 0.97 percent to finish at 3,674.11 points on Monday, where Asian stocks ended trading today on a mixed note.

This week, China will publish its manufacturing and services data for March, which will track the economic damage caused by the Covod-19 spread.

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