Cen­tral bank low­ers cash re­serve re­quire­ment

China Daily (Canada) - - FRONT PAGE -

China’s cen­tral bank low­ered the amount of cash that all fi­nan­cial in­sti­tu­tions need to re­serve, a move aimed at help­ing spur bank lend­ing amid a slow­ing econ­omy.

The 1-per­cent­age point cut by the Peo­ple’s Bank of China (PBOC) ef­fec­tive on Mon­day is ex­pected to re­lease liq­uid­ity of at least 1.2 tril­lion yuan ($197 bil­lion) to sup­port eco­nomic growth.

The bank low­ered the re­serve re­quire­ment ra­tio by 100 ba­sis points to 18.5 per­cent. It is the sec­ond cut in three months, and the big­gest slash since Novem­ber 2008.

The move also in­cludes an ex­tra 1-per­cent­age point cut in the ra­tio to com­mer­cial banks for agri­cul­tural ser­vices and a fur­ther cut by 0.5 per­cent­age points to el­i­gi­ble banks that lend a cer­tain amount of money to agri­cul­tural bor­row­ers or to small and mi­cro busi­nesses, ac­cord­ing to the bank.

The cen­tral bank has also cut in­ter­est rates twice since Novem­ber to lower bor­row­ing costs and spur de­mand.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.