China’s central bank has cut the reserve requirement needed by banks to boost liquidity in the system. People’s Bank of China (PBOC) said on its website it would cut the reserve requirement ratio (RRR) for all banks by 50 basis points (bps).
This move will release around 1 trillion yuan ($154.19 billion) in long-term liquidity in the Chinese economy. This is the first cut in reserve requirement by China since April 2020.