PBOC cuts short-term rate ahead of briefing

China announced plans for a rare briefing on the economy by three financial regulators just as it cut one of its short-term policy rates, fueling speculation officials are preparing to ramp up efforts to revive growth.

The decision to lower the 14-day reverse repurchase rate to 1.85% from 1.95% came ahead of the National Day Holiday that will last seven days from October 1. The People's Bank of China (PBOC) typically offers 14-day loans ahead of long break. The last time it provided such lending was in February ahead of the week-long Lunar New Year break. The central bank also injected 74.5 billion yuan ($10.6 billion) of liquidity into the banking system via the tool, it said.

Authorities announced Monday that PBOC governor Pan Gongsheng will hold a press conference Tuesday on financial support for economic development, alongside two officials. Taken together, the moves bolster hopes for the PBOC to lower rates, after the US Federal Reserve started cutting last week easing pressure on China's need to defend its currency.