China's central bank reduced its reverse repurchase rate unexpectedly by 20 basis points on Monday.
The People's Bank of China decided to lower the 7-day reverse repo rate to 2.20 percent from 2.40 percent. The central bank injected CNY 50 billion into the financial system. The bank said it will maintain sufficient liquidity in the system to underpin economic activity.
Earlier this month, the central bank had reduced the reserve requirement ratio for qualified banks with effect from March 16, releasing CNY 550 billion into the financial system.