China cuts reserve requirement ratio for some banks by 1%
Headlines via Bloomberg and Reuters
PBOC says that the cut will be effective as of 25 April.
It has been the case in the past that the PBOC is using targeted RRR cuts in order to boost lending. And in this case they say that the funds released by the RRR cuts are for banks to repay MLF loans.
But a 100 bps cut is quite substantial, most economists are only expecting a 50 bps cut by year-end for all banks.
The PBOC adds that this will pay back around CNY 900 bn worth of MLF and release about CNY 400 bn of liquidity.