China’s central bank lowered on Monday the interest rate on reverse repurchase agreements by five basis points, the first reduction in the short-term liquidity tool in more than four years, reported Reuters.
The People’s Bank of China said on its website that it was lowering the seven-day reverse repo rate to 2.50% from 2.55%.
The news helped Shanghai blue chips recoup early losses to rise 0.3% .CSI300, though the initial reaction was cautious overall. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS also moved 0.3% higher.