China cuts 7-day reverse repo rate, banks' reserve requirement ratio - Breaking The News
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China cuts 7-day reverse repo rate, banks' reserve requirement ratio

Economy
Christian Baha / KA

1 min read

EPA-EFE/WU HONG

The People's Bank of China (PBoC) came through on the announcement it made earlier this week, by cutting both the amount of cash that commercial banks have to have on hand, known as the reserve requirement ratio (RRR), and its 7-day reverse repurchase rate on Friday.

The PBoC cut the reserve requirement ratio (RRR) by 50 basis points, while also slashing its seven-day reverse repurchase rate to 1.5% from 1.7%.

PBoC Governor Pan Gongsheng expects the RRR cut to result in long-term liquidity of about 1 trillion yuan ($142 billion) flowing into the financial market.

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