The People's Bank of China today announced an adjustment to its 7-day reverse repo rate, lowering it by 10 basis points to 1.90 percent. This rate was last lowered in August 2020 and this reduction could signal further adjustments to policy settings will be considered in coming days.

Today's move follows the release of data showing subdued price pressures and an uneven recovery in economic activity. Comments from PBoC Governor Yi Gang published last week indicated that officials remain confident that both economic activity and price pressures will pick up in the second half of the year. He reiterated that monetary policy will be kept"stable" while arguing there is"ample policy room" to support economic recovery. Key activity data for May will be published later in the week.

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