BEIJING (Reuters) -China’s central bank will cut banks’ reserve requirement ratio by 50 basis points and further reduce key interest rates to support a recovery in prices, its governor Pan Gongsheng said on Tuesday.
Pan, speaking at a news conference alongside officials from two other financial regulatory agencies, said the seven-day repo rate will be cut by 0.2 percentage points to 1.5% and said deposit and other interest rates will fall as well.
Interest rates on existing mortgages will also be reduced by 0.5 percentage point on average, Pan said, in a move that could provide some relief to households but may raise concerns about bank profitability.
Pan did not specify when the moves will come into effect.
Stocks rose and the opened at its strongest level since May 2023. Ten-year bond yields fell to 2%.
