Chinese money rates tumble to year-plus lows as central bank slashes RRR

April 24, 2015 3:53 AM

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By Lu Jianxin and Kazunori Takada SHANGHAI, April 24 (Reuters) - Chinese money rates fell sharply for the eighth week in a row after the People's Bank of China (PBOC) cut banks' required reserve ratios (RRR) in an effort to support economic growth, traders said. "It's clear that the government is going all out to reduce fundraising costs for the economy," said a trader at a state-owned bank in Shanghai. "As such, money market rates will see sharp fall in coming weeks and months, with the benchmark 7-day repo rate having the potential to head for 2 percent, its lowest post-crisis level."

The volume weighted average yield for the benchmark seven-day repo rate stood at 2.42 percent by midday on Friday, its lowest level since March last year and down 44 basis points from the end of last week. The 14-day repo was down 34 basis points on the week at 3.08 percent, its lowest since April l...

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