China Cuts Reserve Ratio by 0.5%

The People’s Bank of China lowered the reserve requirement ratio for all commercial banks by 50 bps to 19.5 percent on February 4th, aiming to boost credit and growth.

The move will be effective from February 5th, 2015. 

Policymakers also lowered the reserve ratio by an additional 50 bps for some urban and rural commercial banks and by an additional 400 bps to China Agricultural Development Bank.

The last time the central bank made a broad-based cut in the amount of cash banks must hold at the central bank was in May of 2012, when it lowered it by 50 bps.

China Cuts Reserve Ratio by 0.5%

Joana Taborda |
2/4/2015 11:16:03 AM