Free Trial
SOUTH AFRICA

Gold Production Collapses in March to -25.6% Y/Y

CZECHIA

CNB Says It Has Intervened To Support CZK

EURJPY TECHS

Clears Key Supports

FOREX

USD and the Yen lead in FX

EQUITIES

No Relief For Tech Stocks

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
MNI (London)
     BEIJING (MNI) - The People's Bank of China (PBOC) cut selected banks'
reserve requirement ratios Friday, releasing CNY550 billion into the system to
shore up the virus-hit economy. 
     The central bank lowered RRRs by 0.5 to 1 percentage point, the second move
this year, allowing banks to meet their annual assessment criteria for enforcing
inclusive finance policy, expected to release CNY400 billion, according to a
statement on its website. 
     Qualified joint-stock commercial banks will receive another 1 pp cut,
releasing another CNY150 billion, according to the statement. Banks receiving
the cut must lower loan rates "markedly" to expand credit to small and
medium-sized private companies, the PBOC said. 
     All cuts will take effect on March 16, the PBOC said. The central bank is
making its prudential monetary policy more flexible and appropriate, further
prioritizing the restoration of the real economy, to keep liquidity ample while
avoid excessive liquidity, according to the statement.
     The RRR cuts can directly reduce the cost of banks' interest payments by
about CNY8.5 billion each year, thus helping reduce SMEs' borrowing costs, the
PBOC said. 
     The PBOC's announcement today, the first since a 0.5 pp RRR cut on Jan. 6,
was widely expected by the market. It followed easing moves by the U.S. Federal
Reserve and other central banks responding to the global spread of the
coronavirus outbreak.
--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com
--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com
--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com
--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com
[TOPICS: MMQPB$,M$A$$$,M$Q$$$]
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.