Central bank cuts key liquidity rate for first time since 2015

The People's Bank of China, the central bank, lowered a key interbank interest rate on Monday, the first such easing in four years as policymakers signaled their intention to enact necessary steps to ensure sufficient liquidity and prop up growth.

The PBOC cut the seven-day reverse repurchase rate, a liquidity tool used as an open market operation, was reduced to 2.5 percent from 2.55 percent, the first such cut since October 2015. The central bank also injected 180 billion yuan ($25.74 billion) into the interbank market at the new rate.

Analysts said the move is more of a policy fine-tuning, aimed at strengthening the market's confidence on liquidity, instead of the aggressive stimulus or high-profile monetary easing.