PBOC Cuts Bank Reserve Requirements

(Beijing) -- China's central bank has cut bank reserve requirements for the first time in nearly three years, with many market analysts interpreting the move as a sign of monetary easing after three years of cautious tightening.

On late November 30, the People's Bank of China announced in a statement published on its website that starting from December 5, the reserve requirement ratio for financial institutions will be cut by 50 basis points, the first decline since December 2008. After the adjustment, the reserve requirement ratio for large banks will decline to 21 percent, while for smaller banks it will lower to 17.5 percent.