PBOC Cuts Short-Term Rates for Banks in Further Sign of Easing

What’s new: China’s central bank lowered interest rates on another short-term monetary policy tool hours after an unexpected cut on a key lending rate, bolstering the probability of further easing moves to help the economy.

The People’s Bank of China (PBOC) late Tuesday lowered the interest rates on the standing lending facility (SLF) by 10 basis points, or 0.1 of a percentage point. After the adjustment, the rate on the overnight SLF was reduced to 2.75%, while rates for the seven-day SLF fell to 2.9% and for the one-month SLF to 3.25%.