China Central Bank Boosts Stimulus to Aid Covid-Hit Economy
- Reserve requirement ratio for banks cut by 25 basis points
- PBOC wants to keep liquidity ample, bolster real economy
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China’s central bank cut the amount of cash lenders must hold in reserve for the second time this year, ramping up support for an economy racked by surging Covid cases and a continued property downturn.
The People’s Bank of China reduced the reserve requirement ratio for most banks by 25 basis points, it said in a statement Friday. The adjustment takes effect on Dec. 5 and will inject 500 billion yuan ($70 billion) of liquidity into the economy.