China Cuts Reserve Ratio by 1%

The People’s Bank of China lowered the reserve requirement ratio for all commercial banks by 100 bps to 18.5 percent, aiming to boost credit and growth.

The decision was taken on Sunday April 19th but it will be effective from April 20th, 2015. 

Policymakers also lowered the reserve ratio by an additional 100 bps for rural commercial banks and by an additional 200 bps to China Agricultural Development Bank. 

It is the second cut in two months. The last time People’s Bank of China reduced the reserve requirement ratio by 50 basis points was on February 4th, the first cut since May of 2012. In February, the central bank also lowered the benchmark interest rate by 25 bps.

China Cuts Reserve Ratio by 1%

Joana Taborda |
4/20/2015 9:19:30 AM