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China again lowers reserve requirement ratio for banks by 50 basis points to 6.6% (tradingeconomics.com)

submitted 1 month ago by tardigrada to c/finance

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The People's Bank of China (PBoC) lowered the reserve requirement ratio (RRR) for banks by 50bps, the second reduction this year aimed at bolstering a stuttering economy. The change, which takes effect today, Sept. 27, was signaled earlier in the week by Governor Pan Gongsheng, bringing the weighted average RRR to 6.6%.

This move will free up about CNY 1 trillion in new lending, with the central bank leaving room for another cut this year.

Additionally, the PBoC trimmed the 7-day reverse repo rate by 20bps to 1.5%. This rate is used to determine the nation's key lending rates. It also stated interest rates for 14-day reverse repos, as well as temporary repos and reverse repos, will continue to be adjusted in line with changes to the 7-day reverse repo rate. China has ramped up the rollout of policy initiatives this week, with its top decision-making body, the Politburo, pledging to introduce further fiscal and monetary support measures to prevent further deterioration of the econom

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[–] Crumbgrabber@lemm.ee 5 points 1 month ago

Thats an absolutely crazy ratio. Does anyone remember what Citibanks was around 2008? I think it was in that ball park. Lets fix it with leverage, boys!