BEIJING - China's central bank has reduced today the standing lending facility (SLF) interest rates by 20 basis points from the July levels. The overnight, seven-day and one-month rates were lowered to 2.35 percent, 2.5 percent and 2.85 percent, the People's Bank of China (PBOC) announced. The SLF, introduced by the central bank early in 2013, serves as a channel to meet the liquidity needs of financial institutions. These institutions can take out SLF loans from the central bank, using qualified bonds and other credit assets as collateral. Also today, the PBOC has cut the reserve requirement ratio for financial institutions by 0.5 percentage points and lowered the seven-day reverse repo interest rate by 20 basis points, enhancing policy support to solidify economic operations.
- Xinhua
Caption: This photo taken on October 19, 2023 shows the headquarters of the People's Bank of China (PBOC - China's central bank) in Beijing.
