Chinese money rates tumble to 4-month lows on easing expectations

April 3, 2015 4:45 AM

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By Lu Jianxin and Pete Sweeney SHANGHAI, April 3 (Reuters) - Chinese money rates fell sharply for the third week in a row, buoyed by widespread expectations the People's Bank of China (PBOC) will continue to ease monetary policy to support growth in the world's second-largest economy, traders said. "Few if any in the market doubt that the PBOC will stick to its easing bias for the rest of this year, although investors are divided over the pace of such relaxation," said a trader at a major Chinese commercial bank in Shanghai. "There is the potential for the seven-day repo to fall below the psychological barrier of 3 percent later this year."

The volume weighted average yield for the benchmark seven-day repo rate stood at 3.4 percent by midday on Friday, its lowest level since late November and down 53 basis points from the end of last week. The 14-day repo was down 47 basis points on the week at 3.92 percent, its lowest since early Dece...

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