China cuts bank reserve requirements amid global material price rises

Politics Economy

China's central bank said Friday that it will cut the amount of cash that banks must hold as reserves, in an attempt to ease credit and shore up the economy hit by rising global material prices. The reduction of the reserve requirement ratio by the People's Bank of China is aimed at prompting financial institutions to lend more money to companies and other entities to boost consumption and domestic investment. The reserve requirement ratio for all lenders will be lowered by 0.5 percentage point to 8.9 percent on Thursday. On Wednesday, a State Council executive meeting chaired by Premier Li Ke...

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