PBOC to cut reserve requirement ratio from 5 February

<p>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.</p><p>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.</p>

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