China's central bank to cut reserve requirements

China's central bank announced Sunday it would reduce the reserve requirement ratio (RRR) for most banks by 50 basis points to free up funding for small firms as a trade war with the US looms. The move to cut the amount of cash banks must hold in reserve will free up a combined 700 billion yuan ($108 billion) in funding at commercial banks and the largest state-owned banks, the People's Bank of China said in a statement. The prospect of tariffs combined with lacklustre economic data last month prompted China's central bank to respond, analysts say.

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June 24, 2018 at 07:25PM