China’s central bank unexpectedly lowered the interest rate on reverse repo rates by 10 bps on 3rd January as authorities stepped up efforts to support the economy suffering from the Wuhan virus outbreak. The 7-day reverse repo rate was cut to 2.4% from 2.5% previously, and the 14-day tenor to 2.55% from 2.65%. Policymakers also injected a total of CNY 1.2 trillion into money markets through reverse bond repurchase agreements as the Shanghai composite slumped about 8% on its first trading day after Lunar New Year holiday.
