{"id":193698,"date":"2023-09-14T19:39:22","date_gmt":"2023-09-14T19:39:22","guid":{"rendered":"https:\/\/tokenstalk.info\/?p=193698"},"modified":"2023-09-14T19:39:22","modified_gmt":"2023-09-14T19:39:22","slug":"china-cuts-reserve-requirement-ratio-for-second-time-this-year","status":"publish","type":"post","link":"https:\/\/tokenstalk.info\/economy\/china-cuts-reserve-requirement-ratio-for-second-time-this-year\/","title":{"rendered":"China Cuts Reserve Requirement Ratio For Second Time This Year"},"content":{"rendered":"
China’s central bank reduced the reserve requirement ratio for the second time this year in yet another move to support the struggling economy<\/span>. <\/p>\n The weighted average RRR for banks will be about 7.4 percent, the People’s Bank of China said in a statement on Thursday. The RRR represents the amount of cash that banks must hold as reserves. <\/p>\n This reduction will not be applicable to financial institutions that implemented a 5-percent RRR. <\/p>\n The move is set to release about CNY 500 billion into the system and reduces funding costs. <\/p>\n The central bank said it would make prudent monetary policy precise and effective and keep ample liquidity in the financial system to support the nascent economic recovery. <\/p>\n In the face of property market downturn and fading economic growth following the initial pick up from the reopening early this year, both government and central bank have rolled out a slew of measures. <\/p>\n In August, the PBoC had reduced the one-year loan prime rate by 10 basis points to 3.45 percent but retained the five-year LPR at 4.20 percent.<\/p>\n The rate on medium-term lending facility, which acts as a guide to loan prime rates, is likely to be maintained at 2.50 percent on September 15 after lowering the rate by 10 basis points in August, as any further reduction could weaken the yuan. <\/p>\n The PBoC had eased its borrowing rules and lowered mortgage rates for the first-time home buyers.<\/p>\n The National Bureau of Statistics is set to release industrial production, retail sales, fixed asset investment data on Friday. <\/p>\n