China’s Central Bank to Cut Reserve Requirement Ratio to Boost Economy
China’s central bank announced on Thursday that it would decrease the amount of cash banks are required to hold in reserves. This decision aims to ensure there is enough liquidity in the financial system and to support the ongoing economic recovery.
The People’s Bank of China (PBOC) stated that it will reduce the reserve requirement ratio (RRR) for all banks, except those already maintaining a 5% reserve ratio, by 25 basis points starting from September 15.
This move comes as the world’s second-largest economy has faced challenges following a slowdown in its post-pandemic rebound.
To bolster the economy, the government has implemented various policy measures in recent months, including initiatives to stimulate housing demand.
Please note: This story is still developing, and more updates will be provided later.
