Stock Groups

China central bank to cut reserve requirement ratio for second time this year -Breaking

by Mike Robinson

[ad_1]

© Reuters. FILEPHOTO : FILEPHOTO: On February 3, 2020, a man with a mask passes the People’s Bank of China’s headquarters in Beijing. REUTERS/Jason Lee/File Photo/File Photo

BEIJING (Reuters – China’s central bank announced on Monday that they would reduce the amount of cash banks can keep as reserves. This was its second such move in this year. The release of 1.2 trillion yuan for long-term liquidity is meant to support slowing growth, despite persistent COVID-19 case.

The People’s Bank of China, (PBOC), stated on their website that they would reduce the bank reserve requirement ratio (RRR), by 50 basis point (bps), starting Dec. 15.

Financial institutions that have an existing RRR greater than 5% will not be affected by the reduction, it said.

Premier Li Keqiang, who referred to the cut on Friday, as a means of increasing support for small and medium-sized businesses.

In October, Reuters found that economists expected China’s growth slowing to 5.5% by 2022. However, some analysts have since trimmed their forecasts due to new risks like a deteriorating realty sector. Omicron coronavirus is another risk.

Disclaimer: Fusion MediaWe remind you that this site does not contain accurate or real-time data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.

[ad_2]