China’s central bank cuts reverse repo rate to 2.15%

China’s central bank cut its 14-day reverse repo rate to 2.15% from 2.25%.

The People’s Bank of China injected 2 billion yuan, or about $287 million, through reverse repurchases for 7 days, and another 10 billion yuan, or about $1.4 billion, through similar operations for two weeks.

It is noteworthy that the “reverse repo” rate is the interest rate that financial institutions obtain in return for depositing their funds with the People’s Bank of China, while the “repo” is the central bank lending rate to banks.

China is trying to stimulate borrowing by individuals by reducing short-term interest rates, with the aim of increasing consumption and improving economic growth figures.