PBoC eases despite continued depreciation fears
China's central bank cuts reserve requirements by 50bp to 17% for major banks
The People's Bank of China (PBoC) has cut banks' reserve requirements, intensifying monetary easing despite rapid credit expansion and large-scale capital outflows in recent months.
The 50 basis point cut in the reserve requirement ratio (RRR) to 17% for major banks, the PBoC's first since October, is effective from today (March 1) and is likely to furnish China's banking system with an immediate liquidity injection of 650–700 billion yuan ($100–107 billion), several banks predict.
The decision
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