China cuts reserve requirements as economy slumps

The People’s Bank of China will cut the reserve requirement ratio for banks as it moves to stabilise growth.

China cuts reserve requirements as economy slumps

China’s central bank said it would cut banks’ reserve requirements on Friday, after a set of disappointing trade data. Effective May 18, it will cut the reserve requirement ratio for banks by 50bp to 20%, which it hopes will free up lending and stimulate a recovery or at least avert a hard landing.

It will likely need to do much more, and soon, given the terrible data. Analysts surveyed by Bloomberg were expecting year-on-year import...

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