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China cuts banks' reserve requirement ratio


China's central bank said on Friday it would cut the amount of cash that banks must hold as reserves for the first time this year to release liquidity and support the economy.


The People's Bank of China (PBOC) said it would cut the reserve requirement ratio (RRR) for all banks, except those that have implemented a 5% reserve ratio, by 25 basis points (bps), effective from March 27.


That follows a 25-bp reduction for all banks in December.


The central bank has promised to make its policy "precise and forceful" this year to support the economy, keeping liquidity reasonably ample and lowering funding costs for businesses.


Read more at: https://economictimes.indiatimes.com/news/international/world-news/china-cuts-banks-reserve-requirement-ratio/articleshow/98730354.cms

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