PBoC aims to galvanise lending by cutting reserve ratio for small banks
Analysts believe the move will inject around $13 billion into the economy
The People's Bank of China (PBoC) will allow some smaller banks to reduce their reserve holdings in an attempt to kick-start lending to small businesses, it announced yesterday.
The central bank was quick to stress there is "ample liquidity" in the economy and the "basic orientation of monetary policy has not changed" – insisting the move was motivated by a desire to help small firms access credit.
Specifically, the PBoC will cut the reserve requirement ratio (RRR) by 50 basis points at every
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