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People's Bank of China cuts reserve requirements ratio again to spur 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 January 6.

twitter-logoReuters | January 1, 2020 | Updated 15:22 IST
People's Bank of China cuts reserve requirements ratio again to spur slowing economy

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 January 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.

Also read: US-China trade deal will be signed on January 15: Trump

Also read: Why China's telecom major Huawei might be on tenterhooks in India

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