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China cuts reserve rates for fifth time in a year | China cuts reserve rates for fifth time in a year |
(35 minutes later) | |
China’s central bank has reduced the amount of cash banks must hold as reserves for the fifth time in the past year, as it seeks to revive the slowing economy. | |
The People’s Bank of China said on Monday it would cut the reserve requirement ratio (RRR) by 50 basis points for all banks, taking the ratio to 17% for the biggest lenders. The cut is effective from 1 March. | |
China last cut RRR on 23 October, when it also reduced interest rates by 25 basis points to rein in social financial costs. | China last cut RRR on 23 October, when it also reduced interest rates by 25 basis points to rein in social financial costs. |
Under the banner of “prudent” monetary policy, the central bank has pursued its most aggressive policy easing since the 2008-09 global financial crisis as it attempted to halt an economic slowdown in the world’s second-largest economy. | |
China’s economic growth slowed to 6.9% in 2015, the slowest pace in 25 years, as weak demand at home and abroad, industrial overcapacity and lukewarm investment added to strains in the economy. | China’s economic growth slowed to 6.9% in 2015, the slowest pace in 25 years, as weak demand at home and abroad, industrial overcapacity and lukewarm investment added to strains in the economy. |
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