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China cuts banks’ reserve ratio for first time in 2023 to support recovery

2023-03-18 09:05:04       source:CNBC

March 17, 2023

China’s central bank said on Friday it would cut the amount of cash that banks must hold as reserves for the first time this year to help keep liquidity ample and support a nascent economic recovery.

Chinese leaders have pledged to step up support for the world’s second-largest economy, which is gradually rebounding from a pandemic-induced slump after virus curbs were abruptly lifted in December.

The People’s Bank of China (PBOC) said it would cut the reserve requirement ratio (RRR) for all banks, except those that have implemented a 5% reserve ratio, by 25 basis points (bps), effective March 27.

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