China cuts bank reserves holdings

  1. 18,561 Posts.
    BEIJING (Reuters) - China's central bank cut the amount of cash that banks must hold as reserves on Wednesday, the first industry-wide cut in more than 2-1/2 years, as it increased efforts to shore up flagging growth in the world's second-largest economy.

    The move, which came less than three months after China also cut interest rates for the first time in over two years, was widely expected by investors, who had bet that monetary policy had to be further loosened to lift economic growth from a 24-year low.

    The reserve requirement ratio, or RRR, would be lowered by 50 basis points, the People's Bank of China (PBOC) said in a statement on its website. The cut is effective from Feb. 5 and will take the RRR for big banks to 19.5 percent.
GET SUPPORT arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.