Category: cut bank reserves

China’s Central Bank Cuts Rates to Boost Economy

March 24, 2023
ChinaChina Business & EconomyChina car saleschina car sales declinecut bank reserves
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News Analysis On the same day China released economic data for January and February, the People’s Bank of China (PBOC) announced a 0.25 percentage point cut to the reserve requirement ratio (RRR) for almost all banks. This move is expected to release approximately 500 billion yuan (about $75 billion) in long-term funds. However, a financial…

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China’s Reserve Ratio Cut May Heighten Companies’ and Banks’ Financial Risk

November 29, 2022
ChinaChina Business & EconomyChina central bankChina’s Zero-Covid Policycut bank reservesOpinionViewpoints
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Commentary On Nov. 25, China’s central bank announced its plan to cut the reserve ratio by 0.25 percent points, effective on Dec. 5, 2022. This would release 500 billion yuan ($69.7 billion) worth of long-term liquidity to the market. However, this move may not effectively boost the economy, but instead increase the financial risk for both…

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