The People’s Bank of China (PBOC) announced on the 25th that it will cut the reserve requirement ratio of commercial banks by 0.25 points. This is the second time the reserve ratio has been cut this year. We will strengthen support for the domestic economy, which is suffering from the spread of the new coronavirus infection and the prolonged real estate recession.
The reserve ratio cut will take effect on Dec. 5, according to a statement posted on the People’s Bank of China website. This will provide 500 billion yuan (about 9.72 trillion yen) of liquidity to the economy.
In a separate statement, the People’s Bank of China said it aimed to “keep liquidity at a reasonably ample level and strengthen support for the real economy,” as well as boost bank support for industries hit by the pandemic. did.
The reduction in the reserve requirement ratioIt was the first since April, the State Council said earlier this week.
China may cut reserve requirement ratio, aims to maintain ample liquidity
Original title:China Central Bank Boosts Stimulus to Bolster Covid-Hit Economy （抜粋）
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