Economics
China Promises to Cut RRR When Needed to Boost Economy
- Policy moves to happen at ‘appropriate time’: State Council
- RRR reductions often made within days of such cabinet comments
This article is for subscribers only.
China’s cabinet said the central bank would cut the amount of money that banks have to keep in reserve at the proper time, a further sign there is likely to be additional monetary stimulus to support the economy.
“China will use monetary policy tools including a RRR cut at an appropriate time, and will step up financial support to the real economy, especially industries and small businesses that have been hit hard by the pandemic,” the State Council said after a meeting Wednesday, according to state-run television. The People’s Bank of China usually announces a reduction within days of the State Council making such a statement.