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.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.