The Governor of the Central Bank of China, Pan Gongsheng, revealed the central bank’s intention to reduce the amount of cash that banks must hold as reserves as of next February 5, which is the first reduction of its kind this year as policymakers expand their efforts to support the fragile economic recovery. .
He pointed out, "The People's Bank of China will reduce the reserve requirement ratio for all banks by 50 basis points, as this step will release one trillion yuan ($139.45 billion) to the market. Whereas in December, the reserve requirement ratio was 7.4 percent."
The People's Bank of China will cut re-lending and re-discounting interest rates by 25 basis points for the rural sector and small businesses, effective January 25.
Source (Al-Sharq Al-Awsat Newspaper, Edited)
