PBOC slashes the reserve ratio requirements

As mentioned earlier in the week, whenever China makes comments such as these, they are usually to preempt the market that they will be taking such a decision soon. And voila, here it is as the PBOC cuts the RRR for banks by 50 bps with effect from 15 July.

This is the first RRR cut since April last year, when the economy was hit by the pandemic and is another message by Chinese officials that they are still trying to bolster economic growth despite recent concerns that support may be lesser to come by this year.