China's Central Bank Cuts Key Policy Rates

China's central bank on Monday cut key policy interest rates, a move that could provide more support to the cooling economy.

The People's Bank of China said it lowered interest rates of both one-year medium-term lending facility and seven-day reverse repurchase agreements by 10 basis points, while injecting liquidity via the two instruments.

The one-year MLF rate was lowered to 2.75% and the seven-day reverse repo rate was cut to 2.0%, the PBOC said.

Monday's cuts may lead to a lowering of China's benchmark lending rates--the Loan Prime Rate--later this month as they rates are priced based on MLF rates.

The central bank also injected 400 billion yuan ($59.3 billion) liquidity via the one-year MLF and CNY2 billion via seven-day reverse repos on Monday.

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(END) Dow Jones Newswires

08-14-22 2158ET