PBoC releases liquidity ahead of new year celebrations
RRR cut is expected to release liquidity to counter the seasonal tightening around Chinese new year
The People’s Bank of China has announced that targeted reserve requirement ratio cuts aimed at inclusive finance will take effect on January 25, releasing liquidity in time for the start of the Chinese new year holiday.
The targeted RRR cut was announced in September last year and will be implemented this year to support the development of inclusive finance business by banks. Analysts expect the cut will release around 700 billion yuan ($108 billion) into the market.
“At present, the relevant
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