China Ratchets Up Stimulus, Cutting Reserve Ratio to Lowest Level Since 2007

  • One central bank that’s not waiting around to ease policy is the People’s Bank of China, which this morning cut its reserve ratio by 0.5%.
  • The move had been flagged earlier this week when the government called for “timely” use of tools including broad and targeted reserve-ratio cuts to support the economy.
  • With some banks getting an extra 1% reduction, the decision will release 900 billion yuan ($126 billion) in liquidity, according to the monetary authority. 

(Source: Bloomberg)