PBoC’s second bank reserve ratio cut this year set to aid recovery

BEIJING: The People’s Bank of China’s (PBoC) announcement last Thursday of a second cut to the reserve requirement ratio (RRR) this year, signals that policymakers are decisively ramping up stimulus to reinforce the pickup in economic momentum, experts say.

The move also highlights the central bank’s top priority of stabilising the domestic economic situation despite downward pressures on the yuan amid monetary tightening in the United States, they said, and a further reduction in benchmark interest rates may come this year.