China Cuts Reserve Requirement Ratio To Boost Economy

The average reserve rate of financial institutions will be 7.6% following the cut, the PBOC said. Photo: Bloomberg

(Bloomberg) — China cut the amount of cash banks must keep in reserve at the central bank in an effort to support lending and strengthen the economy’s recovery from pandemic restrictions and a property market slump.

The People’s Bank of China reduced the reserve requirement ratio for almost all banks by 0.25 percentage points, effective from March 27, it said in a statement on Friday. The PBOC last cut the RRR in December, by the same magnitude.