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China cuts reserve requirement ratio to bolster growth

Published 02/29/2016, 06:38 AM

Investing.com - The People’s Bank of China eased monetary policy on Monday by cutting the amount of cash that banks must hold as reserves

It was the fifth time since February 2015 that the PBOC cut the Reserve Rate Requirement as it seeks to revive a stumbling economy

Cutting the RRR will guarantee “ample liquidity” in the financial sector and encourage “appropriate growth” in the credit market the PBOC said

A lower RRR will give Chinese banks the leeway to lower borrowing costs and to make more money available to borrowers

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