Wednesday, January 1, 2020

China cuts banks' reserve requirements again to spur slowing economy

BEIJING: China's central bank said on Wednesday it was cutting the amount of cash that all banks must hold as reserves, releasing around 800 billion yuan ($114.91 billion) in liquidity to shore up the slowing economy.

The People's Bank of China said on its website it will cut banks' reserve requirement ratio (RRR) by 50 basis points, effective Jan. 6. Many analysts had expected such a move was imminent.

The PBOC has now cut RRR eight times since early 2018 to spur more bank lending as economic growth slows to the weakest pace in nearly 30 years. - Reuters



source https://www.thesundaily.my/business/china-cuts-banks-reserve-requirements-again-to-spur-slowing-economy-CH1845343

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