PBoC cuts the one-year relending facility rate to 1.25% (prev. 1.50%), to increase tech innovation quotas by CNY 400bln to CNY 1.2tln
Importance
Level 1
- Central Bank to boost relending quotas to power tech innovation.
- Pledges continued liquidity support via open market tools.
- Overnight rates will be guided to hover near policy rates.
- Will maintain ample liquidity to support bond issuance.
- Will flexibly conduct government bond operation going forward.
- Lowers minimum down payment for commercial property loans to 30% to boost market inventory clearance.
- No intention to use currency depreciation for trade advantage.
- Will guide expectation and prevent overshooting in CNY risk.
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