China Cuts Key Rate, Frees Up Cash for Banks to Spur Growth
- Reductions in RRR, short-term rate are effective from Friday
- PBOC vows to ‘go all out’ to implement additional support
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China cut the amount of cash banks must keep in reserve Friday and lowered a key policy rate, as Beijing rolls out a strong stimulus package unveiled this week in a push to shore up the slowing economy and investor confidence.
The People’s Bank of China’s 0.5 percentage point reduction to the reserve requirement ratio was announced earlier this week by central bank chief Pan Gongsheng, who didn’t provide a timeframe.