Reserve requirement ratio cut to boost growth

Large stimulus: Pedestrians wearing face masks walk past the PBoC building in Beijing. It’s estimated that the RRR cut will release 500 billion yuan (RM325bil) in long-term cash to China’s banking sector. — AP

BEIJING: China has 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 (PBoC) reduced the reserve requirement ratio (RRR) for almost all banks by 0.25 percentage points, effective from March 27, it said in a statement last Friday. The PBoC last cut the RRR in December, by the same magnitude.