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China Cuts Reserve Requirement Ratio To Boost Economy

  • PBOC reduces RRR by 25bps for first time since December
  • Economists say move aims at maintaining strong bank lending
Bloomberg business news
China Cuts Reserve Requirement Ratio in Bid to Boost EconomySource: Bloomberg
Updated on

China cut the amount of cash banks must keep in reserve at the central bank in an effort to support lending and strengthen the economy’s recovery from pandemic restrictions and a property market slump. 

The People’s Bank of China reduced the reserve requirement ratio for almost all banks by 0.25 percentage points, effective from March 27, it said in a statement on Friday. The PBOC last cut the RRR in December, by the same magnitude.