Category: cut bank reserves

China’s Central Bank Cuts Rates to Boost Economy

News Analysis On the same day China released economic data for January and February, the People’s Bank of China (PBOC) announced a 0.25 percentage point cut to the reserve requirement ratio (RRR) for almost all banks. This move is expected to release approximately 500 billion yuan (about $75 billion) in long-term funds. However, a financial…


China’s Reserve Ratio Cut May Heighten Companies’ and Banks’ Financial Risk

Commentary On Nov. 25, China’s central bank announced its plan to cut the reserve ratio by 0.25 percent points, effective on Dec. 5, 2022. This would release 500 billion yuan ($69.7 billion) worth of long-term liquidity to the market. However, this move may not effectively boost the economy, but instead increase the financial risk for both…