Economics
China Signals Reserve Ratio Cuts Coming Soon For Virus Fight
- Cabinet pledges funding for some banks to encourage SME loans
- PBOC could move in a few days, past experience shows
This article is for subscribers only.
China’s cabinet called for a further reduction in the amount of cash some lenders are required to park at the central bank, as the government seeks to ease monetary conditions to support the economy amid the impact of the coronavirus.
The State Council meeting chaired by Premier Li Keqiang called for reserve requirement ratio cuts “soon” for banks participating in a program to secure funding for small and medium-sized companies, according to a statement released by the government. Additional cuts in the reserve ratios for joint-stock banks were also pledged at the meeting.