BEIJING (Reuters) – China’s central bank said on Friday it would cut the amount of cash that banks must hold as reserves by 50 basis points, the second reduction this year aimed at bolstering faltering economic growth.
The move, effective Sept. 27, was flagged on Sept. 24 by PBOC Governor Pan Gongsheng at a press conference, alongside cuts in several key interest rates and measures supporting capital markets aimed at stimulating economic activity amid persistent deflationary pressures.
The People’s Bank of China (PBOC) said it would cut the reserve requirement ratio (RRR) for all banks, except those that have implemented a 5% reserve ratio.
Pan had said such a move would free up about 1 trillion yuan ($142.44 billion) for new lending and left the door open to another reduction later this year.
($1 = 7.0203 Chinese yuan)
(Reporting by Ellen Zhang, Farah Master and the Beijing newsroom; Editing by Jacqueline Wong)
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