PBOC to cut reserve requirement ratio from 5 February

It will be a hefty reduction this time around, as the Chinese central bank announces a 50 bps cut to the reserve requirement ratio (RRR). The weighted rate before the cut was 7.40%. In effect, this will release ¥1 trillion in the economy.

For some context, China went with two RRR cuts in 2023 i.e. one in March and one in September. They were both for 25 bps each.

This article was written by Justin Low at www.forexlive.com. Source