In a China Securities Journal article analysts say they see space for further cuts to China's Reserve Requirement Ratio (RRR) this year. By 100 to 200 bp.
The People's Bank of China last cut the RRR on May 7. A 50bp cut.
I'd suggest it'll be many months before we see another cut.
---
---
The Reserve Requirement Ratio (RRR) is a central bank regulation that sets the minimum amount of reserves each bank must hold in relation to their deposit liabilities. Its the percentage of total deposits that banks are legally required to keep on hand, either as cash in their vaults or in a reserve account at the central bank.
In China, this ratio is set by the People's Bank of China (PBOC).By adjusting the RRR, the PBOC can influence the lending capacity of commercial banks. For example, an increase in RRR means that banks have less money to lend out because they have to keep more in reserve. This reduces the money supply in the economy. Conversely, if the PBOC decreases the reserve ratio, banks have more money to lend because they are required to keep less in reserve. This increases the money supply in the economy, which can stimulate economic activity. This article was written by Eamonn Sheridan at www.forexlive.com.Hence then, the article about chinese financial media reports again that there is room for cuts to the rrr this year was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( Chinese financial media reports, again, that there is room for cuts to the RRR this year )
Also on site :
- Supermarket timings for Boxing Day and New Year revealed for Asda, Tesco, Sainsbury’s, Aldi, Lidl and more
- IND vs SL Dream11 Prediction, Dream11 Playing XI, Today Match 3, India Women vs Sri Lanka Women T20I series 2025
- ABL Bio Receives Upfront Payment for License, Research and Collaboration Agreement for Grabody Platform and Equity Investment from Lilly