China’s Central Bank To Conduct Targeted RRR Cuts On Mar 16

To shore up the real economy and help reduce actual cost of financing, the People’s Bank of China (PBOC), the country’s central bank, announced on March 13 that it would implement targeted Required Reserve Ratio (RRR) cuts for inclusive finance, which will be effective on March 16, 2020, lowering the RRR by 0.5 to 1 percentage points for banks that meet particular criteria. A further cut of 1 percentage point will be prescribed for eligible joint stock commercial banks to encourage lending in inclusive finance. The cuts will release RMB550 billion (USD78.67 billion) of long-term funds.