China cuts bank reserve requirements amid COVID-19 resurgence

Politics Economy

China's central bank said Friday 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 another wave of novel coronavirus infections. The reduction of the reserve requirement ratio by the People's Bank of China is aimed at bolstering consumption and domestic investment by prompting financial institutions to lend more money to companies and other entities. The reserve requirement ratio for all lenders will be lowered by 0.25 percentage point to 8.1 percent -- the first cut since December. The world's second-biggest economy h...

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