China slashes interest rates for SLF loans in April

China’s central bank reduced interest rates on its standing lending facility (SLF) in April. The scheme was to implement similar reductions made in other liquidity instruments aimed at salvaging the virus-beaten economy.

The People’s Bank of China had slashed its SLF rates by 30 basis points, with overnight loans now at 3.05%, seven-day loans at 3.02%, and one-month loans at 3.55%.

The PBOC has been providing supports to prevent the economy from receding. It reduced key policy rates and previously curbed the amount banks are allowed to keep to increase system liquidity and decrease financing fees.

The PBOC pledged to enforce the support it renders by providing larger volumes of stimulus- a move indicating that growth and job creation were policymakers’ top priority as the country suffers from lack of demand.