PBOC to reduce funding costs for smaller firms and rural sectors from 1 July - report

The Securities Times reports that the PBOC will cut its re-discount and re-lending rates starting from tomorrow

The re-discount and re-lending rates will be reduced by 25 bps, with the Chinese central bank to also cut the re-lending rate related to financial stability by 50 bps as of 1 July.

The move will help to reduce funding costs for smaller firms and rural sectors, adding to continued efforts by the central bank and local authorities to bolster economic activity and lessen the burden amid the impact from the virus outbreak.