PBOC announces RRR cut for some banks
China joins in on the fun, but they have been hinting at this for a while
- To cut RRR by 0.50% to 1.00% for banks under its inclusive finance scheme
- Cuts RRR by additional 1.00% for joint-stock banks
- Targeted RRR cuts to unleash ¥550 billion to the banking system
The cuts will go into place w.e.f. 16 March as China and it is consistent with the central bank's policies over the past year or so - even if you count out the coronavirus impact.
But nonetheless, this will help to alleviate pressure on the banking system and liquidity, and that's always good news for stocks.