Fri, 29 Mar 2024 Today's Paper

China to cut reserve requirements for banks to boost economy

By

7 September 2019 12:01 am - 0     - {{hitsCtrl.values.hits}}

A A A

BEIJING (AFP) - China’s central bank announced yesterday it was cutting the reserve requirements for banks, in a bid to boost lending and bolster the 
slowing economy.


The People’s Bank of China (PBoC) will cut the reserve requirement ratio (RRR) on September 16 by 50 basis points, it said in a statement, reducing the amount of cash banks must hold.
State news agency Xinhua described the decision as “the latest effort to bolster the economy”, while the PBoC said it had cut the requirement “to support the development of real economy”.


Lowering the RRR for banks frees up more money for lending to small businesses, and the latest cut follows a drop in May this year.


China’s State Council signalled that the move was being considered earlier this week, after a meeting Wednesday discussed policy tools including an increase in the use of local government bonds to finance infrastructure projects.

 

Ting Lu, chief China economist at Nomura investment bank, said in a note that an RRR cut is “a signal that Beijing is becoming increasingly worried about the worsening slowdown” and wants to stabilise growth.


China’s economic growth has been slowing in recent years, and has been hit by the bruising trade war with the United States.


The reserve cut came a day after China confirmed it would resume trade talks in Washington in early October, raising hopes that fresh negotiations could help ease tensions between the world’s two biggest economies.


Both sides imposed fresh tariffs on goods worth hundreds of billions of dollars on September 1.

 

 


Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

  Comments - 0

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment





Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

VAT increase: SOUNDs death knell for publishers, readers

Though the Government imposed VAT (Value Added Tax) on vegetables and other e

How female change-makers are driving Sri Lanka’s energy saving platform

Saving energy has become more of a responsibility than a habit in today’s c

A dull Ramadan awaits Muslims amidst the Soaring Cost of Living

In the coming days, Muslims across the world will welcome the Holy Month of R

New wildlife underpass to curtail HEC

As of February 2024, Sri Lanka lost another 38 elephants as a result of the H