Download
Gold held steady above $2,400 per ounce while oil prices edged up slightly in Asian trade after having hit a four-week low on Friday.
China’s Shanghai Composite index dropped 0.61 percent to 2,964.22, getting little lift from the surprise 10-bps cut in short-term rates by the country’s central bank.
China lowered its short-term policy rate as well as benchmark lending rates on Monday, in order to prop up growth.
The People’s Bank of China cut the interest rate on seven-day reverse repos to 1.7 percent from 1.8 percent.
The action was aimed to strengthen counter-cyclical adjustments to better support the real economy, the central bank said.
On Monday, the PBoC conducted CNY 58.2 billion of seven-day reverse repos. The operation will help to keep reasonable and ample liquidity in the banking system, the bank added.
After cutting seven-day reverse repo rate, the central bank lowered the one-year loan prime rate to 3.35 percent from 3.45 percent.
Similarly, the five-year LPR, the benchmark for mortgage rates, was trimmed to 3.85 percent from 3.95 percent. The five-year LPR was last lowered by 5 basis points in February.
Powered by Capital Market – Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
First Published: Jul 22 2024 | 4:05 PM IST