Credit Suisse expects 50 bps cut in China's first-half reserve requirement ratio

BENGALURU: Credit Suisse economists expect a further 50 basis point (bps) cut in China's reserve requirement ratio (RRR) in the first half of 2022, given the Asian economy is starting to ease policy while other countries are tightening.

China's central bank had last month cut RRR, or the amount of cash that banks must hold as reserves, releasing 1.2 trillion yuan ($188.77 billion) in long-term liquidity to bolster slowing economic growth amid persistent COVID-19 cases.