China again lowers reserve requirement ratio for banks by 50 basis points to 6.6%
China again lowers reserve requirement ratio for banks by 50 basis points to 6.6%
Cash Reserve Ratio in China decreased to 9.50 percent in September from 10 percent in August of 2024. This page provides - China Cash Reserve Ratio- actual values, historical data, forecast, chart, statistics, economic calendar and news.
The People's Bank of China (PBoC) lowered the reserve requirement ratio (RRR) for banks by 50bps, the second reduction this year aimed at bolstering a stuttering economy. The change, which takes effect today, Sept. 27, was signaled earlier in the week by Governor Pan Gongsheng, bringing the weighted average RRR to 6.6%.
This move will free up about CNY 1 trillion in new lending, with the central bank leaving room for another cut this year.
Additionally, the PBoC trimmed the 7-day reverse repo rate by 20bps to 1.5%. This rate is used to determine the nation's key lending rates. It also stated interest rates for 14-day reverse repos, as well as temporary repos and reverse repos, will continue to be adjusted in line with changes to the 7-day reverse repo rate. China has ramped up the rollout of policy initiatives this week, with its top decision-making body, the Politburo, pledging to introduce further fiscal and monetary support measures to prevent further deterioration of the econom
Thats an absolutely crazy ratio. Does anyone remember what Citibanks was around 2008? I think it was in that ball park. Lets fix it with leverage, boys!