The People’s Bank of China on Tuesday unexpectedly cut a key short-term policy rate for the first time in 10 months in order to help a struggling post-COVID recovery, Azernews reports, citing Anadolu Agency.

The 7-day reverse repurchase rate was lowered by 10 basis points from 2% to 1.9%, the central bank said in a statement.

The move came ahead of the bank's medium-term lending facility interest rate – one-year loan prime rate (LPR) – decision on Thursday.

The Chinese yuan weakened to 7.1618 per US dollar following the announcement.