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What To Know About China’s RRR Cut
As tipped by Li Keqiang at a State Council meeting earlier this week, China cut the reserve requirement ratio for all banks by 0.5% on Friday.
That takes the rate to the lowest since 2007. Some city commercial banks will see their RRR rate cut by a full percentage point. The moves will be implemented in steps, with the broad cut coming on September 16 and the targeted measures on October 15 and November 15.
The PBoC last cut RRR in May and before that in January. The latest move comes ahead of
After the cuts, the required reserve ratio will be 13 per cent for large banks, and 11 per cent for medium and small-sized banks. The rate will be even lower at 10 per cent and 7.5 per cent, respectively, for city commercial banks and county-level banks.