China’s central bank has announced it will reduce the amount of cash banks must hold in reserve for the second time since the beginning of the year, releasing liquidity of $ 1.2 trillion. Yuan in the long run to boost economic growth, which is slowing due to a pandemic.
China’s central bank cut its benchmark reserve ratio (RRR) for banks by 50 basis points from December 15.
The reduction will not apply to financial institutions with an existing RRR of 5%, he added.
The cut, the second since the beginning of the year, follows a broad cut in July, which was presented by Prime Minister Li Keqiang as a way to accelerate support for the economy, especially for small businesses.
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Source From: Capital
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