Analysis: China’s Shifting Approach to Monetary Policy Regulation

China’s central bank announced several policy operations Monday, including cutting the seven-day reverse repurchase rate, a key short-term policy rate, by 10 basis points.

Following the rate cut, a central bank-backed body announced that both the national one-year and five-year-plus loan prime rates (LPRs), market-based benchmarks, have been lowered by 10 basis points.