China's central bank will cut the reserve requirement ratio (RRR) and lower key interest rates to stabilize the market and expectations, said Pan Gongsheng, governor of the People's Bank of China (PBOC), on Wednesday.
Speaking at a press conference, Pan revealed a slew of measures the central bank will take to support China's economic growth.
"The People's Bank of China will strengthen macro regulation and roll out a package of monetary policy measures. It will lower the reserve requirement ratio by 0.5 percentage points, providing about one trillion yuan (about 138.9 billion U.S. dollars) in long-term liquidity," said Pan.
The central bank will also improve the reserve requirement system and temporarily reduce the reserve requirement ratio for auto finance companies and financial leasing companies from the current five percent to zero, said Pan.
"We will also lower the policy interest rate by 0.1 percent. It means that the interest rate of seven-day reverse repos will be lowered to 1.4 percent from the current 1.5 percent. It is expected to bring down the loan prime rate (LPR) by about 0.1 percentage points," said Pan.
Pan also said that the central bank will continue a moderately loose monetary policy, adjust its policies based on economic conditions, and enhance coordination with fiscal policy to support high-quality growth.
China to cut reserve requirement ratio, key interest rate: central bank governor
The targeted killings of Iran's top leadership, including security chief Ali Larijani, have significantly narrowed diplomatic options and may push the country toward a more hawkish posture, according to a political analyst.
Tensions between Iran and Israeli-U.S. forces have continued to escalate, as a series of targeted strikes killed several high-ranking Iranian officials in recent days.
Among them were Secretary of the Supreme National Security Council (SNSC) Ali Larijani, Gholam-Reza Soleimani, chief commander of the voluntary Basij force of the Islamic Revolutionary Guard Corps, and Intelligence Minister Esmaeil Khatib.
Larijani was widely seen as a pragmatic and experienced politician who played a central role in nuclear negotiations and was viewed by many as a bridge between Iran and the West.
Iran's Supreme Leader, Mojtaba Khamenei, has vowed that those responsible will soon have to pay.
In an interview with China Global Television Network (CGTN), Foad Izadi, a political analyst, suggested that the killing of Ali Larijani may represent an effort to eliminate any remaining hopes for diplomatic engagement between Iran and the United States.
"He was a moderate [politician]. He basically wanted to make sure that Iran and the United States reach a political agreement. And I think the reason Israelis killed him was because Israelis don't want Iran and the United States to reach a political agreement. So, he was one of the people who could manage that between the political establishment here. And this is very logical: if these people are killed, the people who will replace individuals like Mr. Larijani will become more hawkish," Izadi said.
Funerals for Larijani and Basij commander Gholam-Reza Soleimani were held in Tehran, drawing a large number of mourners. They expressed both grief and anger, vowing revenge against the United States and Israel.
On Feb. 28, Israel and the United States launched joint attacks on Tehran and several other Iranian cities, killing the country's supreme leader, senior military commanders and civilians. Iran responded with waves of missile and drone attacks targeting Israel and U.S. assets in the Middle East.
Killing of Iran's top security officials narrows diplomatic path: political analyst
