The People's Bank of China on Friday decided to cut reserve ratios for some rural financial institutions by one percentage point, reports said citing SINA.
The reserve ratio requirement cut came after the economy logged it weakest growth in nearly three years. The gross domestic product expanded 8.1 percent year-on-year in the first three months of 2012.
In February, the central bank had reduced the reserve requirement ratio by 50 basis points to 20.5 percent for large commercial banks.
Yesterday, the World Bank urged China to tweak its reserve requirements further to ease the availability of credit. But the policy rate action should best be reserved for potential downside scenarios since real interest rates are already accommodative, it said.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.