China’s central bank cut a short-term policy interest rate, easing its monetary stance to help aid the economy’s recovery.

The People’s Bank of China lowered the seven-day reverse repurchase rate by 10 basis points to 1.9%, according to a statement Tuesday.

The easing comes ahead of the PBOC’s monthly operation on Thursday of its medium-term lending facility. Seven of the 16 economists surveyed by Bloomberg forecast a reduction in the one-year MLF rate.

The offshore yuan extended its loss, falling 0.3% to 7.1748 per dollar, after the rate cut. The yield on 10-year government bonds fell three basis points to 2.64%.

--With assistance from Tian Chen.