Central Bank of China pegs reserve requirement ratio to boost SMEs

The Central Bank of China has announced a cut in the amount of cash that some banks are required to hold in reserve.

People’s bank of china move to make a reserve requirement ratio (RRR) to boost more lending to smaller firms and energize key sectors.

The cut this time, extends to cover other areas, including poverty reduction and entrepreneurship and innovation.

The CBC said it will maintain neutral monetary policy and use multiple tools to keep liquidity stable.

The RRR will be cut further by one percent if the ratio exceeds ten percent.

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