China's Plan to Cut Banks' Reserve Ratio to Help Liquidity in the Economy

Friday, 18 October 2024, 02:52

Economy-focused measures reveal China's intent to cut banks' reserve requirement ratio. PBOC governor Pan Gongsheng announced plans to bolster liquidity, helping the economy. Further cuts may occur in the fourth quarter.
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China's Plan to Cut Banks' Reserve Ratio to Help Liquidity in the Economy

China's Strategy to Help Liquidity

The People's Bank of China (PBOC) governor Pan Gongsheng stated that in efforts to support the economy, the central bank is considering a further cut in the commercial banks' reserve requirement ratio in the upcoming fourth quarter.

Details on the Reserve Requirement Ratio Cuts

  • PBOC plans to lower the ratio between 25 and 50 basis points.
  • Pan emphasized adjustments according to the liquidity situation.
  • The announcement was made at the Financial Street Forum in Beijing.

This proactive approach aims to shore up the economy significantly and facilitate smoother financial operations among commercial banks.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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