PBOC announces RRR cuts for some banks effective 2018
|The Chinese central bank (PBOC) announced on Saturday that it will cut the Reserve Requirement Ratio (RRR) for some banks effective 2018.
Key Details:
Cuts RRR for banks involved in lending to agriculture and small firms
PBOC will maintain prudent, neutral monetary policy
Will use multiple monetary policy tools to keep liquidity basically stable
Will guide reasonable growth of lending and social financing
Will continue with interest rate, exchange rate reform
Will keep Yuan basically stable
Key Points (via Bloomberg):
Could unleash upwards of 600 billion Yuan ($90 billion) for new lending
Targeted reserve requirement ratio cut is also a signal policy makers don't want to ease monetary policy across the board
PBOC is attempting to push funds to specific places via incentives for commercial lenders
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