PBoC to cut reserve requirement ratio

Top officials have previously called for use of the policy tool to boost economy

The People’s Bank of China
The People's Bank of China

China’s central bank said today (March 17) it would cut the amount of cash reserve requirements for banks, in its first such move this year.

The People’s Bank of China said it would cut the reserve requirement ratio (RRR) for almost all banks by 25 basis points. The move does not apply to a minority of banks that have already implemented a 5% reserve ratio. The decision will take effect on March 27.

The average weighted RRR for financial institutions will be around 7.6% after the cut, it said

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