Tag Archives: China banks’ required reserve ratio

The latest cut in banks’ required reserve ratios seems likely to have been motivated by additional signs of slowdown in the Chinese economy, but may not herald a massive monetary stimulus.Over the weekend, the People’s Bank of China (PBoC) announced a cut of 100 basis points (bps) in banks’ required reserve ratio (RRR). This is the third RRR cut since April. The PBoC estimates that it will free up about Rmb 750 billion of net new liquidity in the banking system. According to the central...

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