An announcement from the People’s Bank of China (PBOC) has stated that the Chinese central bank will be slashing their reserve requirement ratio once again, targeting large-scale banking firms in a bid to further boost domestic spending and lending as trade war unease continues to put downside pressure on China’s domestic economy.
Key highlights
The RRR cut will come into effect on October 15th, and will be the fourth RRR cut from the PBOC in 2018.
The ratio cut will apply to large commercial banks, joint-stock commercial banks, both city and rural commercial banks, as well as foreign banks in a bid to boost lending and encourage consumption spending within the Chinese economy.
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