BEIJING: China’s central bank will increase the supply of cheap funding to banks by cutting the amount of cash they need to hold as reserves, a move aimed at putting a floor under economic growth in 2020.
The required reserve ratio for commercial lenders will be lowered by 50 basis points from Jan 6, unleashing about 800 billion yuan (US$115bil) of liquidity into the financial system, the People’s Bank of China (PBOC) said on its website Wednesday (Jan 1).
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