China Reduces Short-Term Borrowing Costs, Reports Reuters

China’s central bank announced on Friday that it has reduced borrowing costs for the standing lending facility (SLF) by 20 basis points across all maturities.

The SLF is a lending mechanism used by the central bank to provide commercial banks with liquidity to meet their short-term cash needs. The People’s Bank of China indicated that the new overnight rate is now set at 2.35%, while the rates for seven-day and one-month loans have been adjusted to 2.50% and 2.85%, respectively.