China to cut bank reserve requirement ratio by 50 bps

The People's Bank of China (PBoC) announced on Wednesday it would cut the amount of cash that commercial banks have to have on hand, known as the reserve requirement ratio (RRR), by 50 basis points from May 15. PBoC Governor Pan Gongsheng said the cut would result in long-term liquidity of about 1 trillion yuan ($138.56 billion) flowing into the financial market. The PBoC also announced it would trim the seven-day reverse repurchase rate to 1.4% from...

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