China PBOC Conducts Second RRR Cut for 2021
Posted on 12/07/2021
The People’s Bank of China (PBOC) said on its website it would cut the reserve requirement ratio (RRR) for banks by 50 basis points, effective from December 15, 2021. The central bank action would unleash 1.2 trillion yuan (US$ 188 billion) in long-term liquidity. After this move, the average RRR for all Chinese banks will be 8.4%. The cut will not apply to financial institutions with existing RRR of 5%.
