China Money Rate in Longest Slide Since 2009

China’s benchmark money-market rate was set to drop for a sixth week, the longest run of declines since 2009, as the central bank guided funding costs lower.

The People’s Bank of China cut the yield in its reverse-repurchase operations by 10 basis points this week, the fourth reduction since early March. Consumer prices gained 1.4 percent last month from a year earlier, data from the statistics bureau showed Friday, trailing the government’s 3 percent inflation target this year.

The seven-day repurchase rate, a gauge of interbank funding availability, slid 54 basis points, or 0.54 percentage point, this week to 2.86 percent as of 10:25 a.m. in Shanghai, a weighted average compiled by the National Interbank Funding Center shows. It dropped 16 basis points Friday.

Bloomberg

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