China cuts banks' reserve requirement ratio

China's central bank said on Friday it would cut the amount of cash that banks must hold as reserves for the second time this year, releasing about 500 billion yuan ($69.8 billion) in long-term liquidity to bolster the slowing economy. The People's Bank of China (PBOC) said it would cut the reserve requirement ratio (RRR) for banks by 25 basis points (bps), effective from Dec. 5.

That follows a 25-bp cut for all banks in April. The world's second-largest economy suffered a broad slowdown in October and a recent spike in COVID-19 cases has deepened concerns about its growth in the last quarter of 2022, amid a property downturn and weakening global demand for Chinese goods. ($1 = 7.1645 Chinese yuan renminbi)

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