BEIJING, May 7 (Reuters) - China's central bank said on Wednesday it would lower the borrowing cost of its seven-day reverse repurchase agreements, as Beijing stepped up monetary easing to support the broad economy in the face of intensifying trade tensions with the United States.
The People's Bank of China (PBOC) said the rate would be lowered by 10 basis points to 1.40% from 1.50%, according to an online statement, taking effect from Thursday.
The seven-day reverse repo rate now serves as the economy's main policy rate. A reduction to the borrowing cost could lead to similar cuts to other market rates and interest rates on other liquidity tools.
The PBOC last lowered the seven-day reverse repo rate by 20 basis points in September 2024.
Reporting by Liz Lee and Beijing newsroom; Editing by Christian Schmollinger
Source: Reuters