PBOC says it is to cut RRR for smaller banks

Author: Justin Low | Category: Central Banks

The Chinese central bank announces targeted RRR cuts for smaller banks

The cut for the qualifying banks will be by 100 bps or 1% and will be implemented via two stages i.e. 15 April and 15 May. The PBOC also announces a cut to its excess reserve interest rate to 0.35% from 0.72% starting from 7 April onwards.

The central bank also says that this will release about ¥400 billion worth of funds into the financial system. The move above was already hinted earlier in the week here.

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