China leaves policy rate unchanged after Fed rate reduction

SHANGHAI (Reuters) -China’s central bank left the borrowing cost of its seven-day reverse repurchase agreements unchanged on Thursday, after the U.S. Federal Reserve reduced interest rates just hours earlier.

The People’s Bank of China (PBOC) injected 487 billion yuan ($68.56 billion) worth of seven-day reverse repos through open market operations, keeping the rate steady at 1.40% from the previous operation.

The seven-day reverse repo rate now serves as the economy’s main policy rate.

The PBOC last lowered the seven-day reverse repo rate by 10 basis points in May.

($1 = 7.1033 Chinese yuan)

(Reporting by Shanghai Newsroom; Editing by Kim Coghill)