China cuts amount of cash banks must hold in reserve - RTHK
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China cuts amount of cash banks must hold in reserve

2025-05-07 HKT 09:57
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  • PBOC Governor Pan Gongsheng said the change in the RRR would release about one trillion yuan in liquidity. File photo: AFP
    PBOC Governor Pan Gongsheng said the change in the RRR would release about one trillion yuan in liquidity. File photo: AFP
China is cutting the amount of cash that banks must hold as reserves by 50 basis points.

It is the first reduction this year, as policymakers seek to support the economy.

The People's Bank of China Governor Pan Gongsheng told reporters on Wednesday that the adjustment in the reserve requirement ratio (RRR) would release about one trillion yuan in liquidity.

Beijing pledged to cut banks' reserve requirement ratio "in a timely manner" at a key meeting in late April.

The central bank also cut a key interest rate. Governor Pan announced that the lending rate to commercial banks would be reduced by 0.25 percent to 1.5 percent. (Agencies)

China cuts amount of cash banks must hold in reserve