China cuts reserve requirement ratio for banks
Change to ratio will release funds for banks to help hard-hit industries, says the PBoC
The People’s Bank of China cut the amount of cash that banks must hold in reserve for the second time this year, it announced today (November 25).
The PBoC reduced the reserve requirement ratio for most banks by 25 basis points to around 7.8%. It said the measure would not apply to banks which are already implementing a 5% reserve ratio.
The adjustment will inject 500 billion yuan ($70 billion) of long-term liquidity into the economy and takes effect on December 5. The central bank cut the
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