The People's Bank of China (PBOC) said it lowered the rate on 237 billion yuan (US$33.1 billion) of one-year medium-term lending facility (MLF) loans to some financial institutions by 10 basis points to 2.65% from 2.75% previously.
In a Reuters poll of 33 market watchers this week, all respondents had predicted a cut to the MLF rate, with 94% of them expecting a 10-bps cut.
It may be recalled that the US Federal Reserve had left interest rates unchanged on Wednesday but signaled in new projections that borrowing costs may still need to rise by as much as half of a percentage point by the end of this year, as the US central bank reacted to a stronger than expected economy and a slower decline in inflation.
In a press conference at the end of the central bank's latest policy meeting, Fed Chair Jerome Powell described US growth and the job market as holding up better than expected under the weight of the aggressive monetary policy tightening of the past year - likely lengthening the Fed's fight to lower inflation but also letting it proceed with less economic damage.
