PBOC cuts RRR by 1%
The People’s Bank of China (PBOC) announced a 100bps cut in its Reserve Require Ratios (RRR), with the additional details found below.
Cuts Reserve Ratio By 50 Bps Jan 15
Cuts Reserve Ratio By 50 Bps Jan 25
Latest RRR cut will help offset liquidity volatility during lunar New Year holiday
Will release 1.5tln Yuan in liquidity
Latest RRR cut will lower interest payment costs for banks by 20bln Yuan annually.
Cut is to support small, private companies financing.
It will not flood economy with liquidity.