China Has Room to Further Cut Reserve Requirement Ratio, PBOC Official Says

What’s new: There is still scope for China to lower its reserve requirement ratio (RRR), a measure that would channel more money into the financial system to fuel economic growth, a central bank deputy governor said at a press briefing Thursday.

In contrast to the near-zero RRR maintained by many foreign central banks, China’s average ratio stands at 7%, remaining a key instrument for the country’s central bank, said Xuan Changneng, a deputy governor of the People’s Bank of China (PBOC).