China Cuts RRR by 25bps

The People's Bank of China cut the reserve requirement ratio for financial institutions by 25bps on November 25th 2022, effective from December 5th releasing around CNY 500 billion in long-term liquidity in an attempt to boost economic recovery.

It follows a similar move in April.

The RRR for big banks now stands at 11%, the lowest since mid-2007 while the weighted average ratio for financial institutions stands at 7.8%.

The central bank also added that it will step up the implementation of prudent monetary policy and will keep liquidity reasonably ample.