Surprise move (Il Sole 24 Ore Radiocor) - Beijing, 22 Jul - The People's Bank of China unexpectedly cut the seven-day revere repo rate to 1.7% from 1.8% aiming to strengthen counter-cyclical adjustments to better support the real economy, the official Xinhua news agency reported citing a statement from the central bank.

According to Xinhua, the PBOC conducted 58.2 billion yuan of seven-day reverse repos at an interest rate of 1.7% to keep liquidity reasonable and ample in the banking system.

The one-year loan prime rate (LPR) came in at 3.35%, down from the previous reading of 3.45%, Xinhua cited data from the National Interbank Funding Center as showing.

The over-five-year LPR, on which many lenders base their mortgage rates, was lowered by 10 basis points to 3.85%. The monthly-released data is a pricing reference rate for banks and is based on rates of the People's Bank of China (PBOC)'s open market operations, Xinhua said.

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(RADIOCOR) 22-07-24 08:00:39 (0059) 5 NNNN