The People's Bank of China reduced its 7-day reverse repurchase rate by 10 basis points to 1.40%, effective 8 May 2025, cutting from the previous level of 1.50% as part of a coordinated package of stimulus measures announced by PBoC Governor Pan Gongsheng alongside the heads of other Chinese financial regulators at a joint press briefing on 7 May.
The 7-day reverse repo rate is the PBoC's primary short-term policy instrument, acting as a benchmark that influences interbank lending rates and, through them, broader credit conditions across China's financial system.
STIMULUS COORDINATED ACROSS REGULATORS
Details of the broader package, released alongside the PBoC rate cut, encompassed a range of support measures targeting credit availability, the property sector, capital markets, and financial institutions' capacity to lend.