China cuts banks' reserve requirement ratio as economy slows

China's central bank said on Friday it would cut the amount of cash that banks must hold as reserves for the first time this year, releasing about 530 billion yuan ($83.25 billion) in long-term liquidity to bolster slowing economic growth. ($1 = 6.3664 Chinese yuan renminbi)

China's central bank said on Friday it would cut the amount of cash that banks must hold as reserves for the first time this year, releasing about 530 billion yuan ($83.25 billion) in long-term liquidity to bolster slowing economic growth. The People's Bank of China (PBOC) said on its website it would cut the reserve requirement ratio (RRR) for all banks by 25 basis points (bps), effective from April 25.

The central bank said it will cut RRR by an additional 25 bps for some smaller banks. The RRR cut, which follows a broad-based reduction in December, marks the latest step by Chinese policymakers to cushion a sharp slowdown in the world's second-largest economy. ($1 = 6.3664 Chinese yuan renminbi)