Via China China Securities Journal, a state-run media outlet in China:People's Bank of China (PBOC) could take further measures in H2 of 2025
Such as an RRR cut if necessaryIn order to
The article added that the PBOC's release of about RMB1 trillion worth of liquidity to the market through RRR cut last month.
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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 china securities journal says pboc may cut rrr to ensure reasonable liquidity in 2h25 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.
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