China's central bank reduced the amount of cash that banks should set aside as reserves to spur liquidity ahead of the Spring Festival.
The People's Bank of China on Wednesday lowered the reserve requirement ratio, or RRR, by 50 basis points, with effect from January 6. The RRR cut will release CNY 800 billion liquidity into the financial system.
The bank had reduced RRR three times last year.
The ratio for big banks was reduced to 12.5 percent and that for smaller banks to 10.5 percent.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.