PBoC cuts reserve requirement ratio but holds policy rate
Data shows some improvement in demand but continuing property sector problems
The People’s Bank of China (PBoC) cut the amount of cash that banks must hold as reserves and injected liquidity into the banking system to support the country’s economic recovery.
The PBoC announced on September 14 it would cut the reserve requirement ratio (RRR) for financial institutions, except those that have implemented a 5% reserve ratio, by 25 basis points from September 15. It said the weighted average RRR for financial institutions would be at around 7.4% after the cut. This was the
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