PBOC: RRR cut by 25 bps effective as of April 25

PBOC: RRR cut by 25 bps effective as of April 25

The People’s Bank of China (PBOC) announced on Friday that it will cut the reserve requirement ratio (RRR) for all banks by 25 basis points (bps) effective from April 25.

The PBOC further noted that it will cut RRR by an additional 25 bps for some smaller banks and noted that it will release about 530 billion yuan in long-term liquidity with this decision.

Additional takeaways 

“Will keep prudent monetary policy.”

“Will not resort to flood-like stimulus, will keep liquidity reasonably ample.”

“Weighted average RRR for financial institutions at 8.1% after the new cut.”

“Will guide financial institutions to use funds released to support industries and small firms affected by COVID.”

“Will closely watch changes in inflation, keep prices stable.”

“Will closely watch monetary policy adjustments by major economies.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Leave a Comment

Your email address will not be published. Required fields are marked *