China announces bank reserve ratio cut to shore up slowing economy

World Economy

China’s central bank said Wednesday it will cut the amount of cash that banks must hold as reserves from Feb. 5 as a monetary easing measure to shore up the slowing economy amid a property sector crisis.

Pan Gongsheng, governor of the People’s Bank of China, said at a press conference that the reserve requirement ratio will be lowered by 0.5 percentage point to pump about 1 trillion yuan ($140 billion) of liquidity into the economy. After the cut, the average reserve requirement ratio for financial institutions will be 7.0 percent.

It will be the first ratio cut this year following the 0.25-po...

Kyodo News

Kyodo News