Alibaba Group Holding Ltd (NASDAQ:BABA) shares are trading higher Tuesday after China’s central bank cut its seven-day reverse repurchase rate.
What To Know: China’s central bank lowered its short-term lending rate from 2% to 1.9%, per Reuters. The move represents the first cut in 10 months and aims to help improve market confidence given the country’s sluggish post-pandemic recovery.
“The central bank’s rate cut decision was not a complete surprise to the market. Commercial banks have already lowered deposit rates, and PBOC governor Yi Gang also mentioned strengthening counter-cyclical adjustment recently,” Ken Cheung, chief Asian FX strategist at Mizuho Bank, reportedly said.
China is scheduled to release credit lending data, retail sales and industrial production data for May this week.
See Also: Here’s Why JD.Com Shares Are Moving
BABA Price Action: Alibaba shares were up 2.31% at $87.84 at the time of writing, according to Benzinga Pro.
Photo: courtesy of Alibaba.
