China reduced the ratio of cash its banks had to hold as reserves by 14.5% in a bid to cut risks of an economic slowdown. The move by the People’s Bank of China was its fifth in the past year and came as the economy faced challenges from weak growth and the tariff dispute with the US. The expected reduction would be introduced in two phases on 15 and 25 January. The ratios were 1% for large banks and 12.5% for smaller players before the cut was announced.
China reduced the ratio of cash its banks had to hold as reserves by 1% in a bid to cut risks of an economic slowdown. The move by the People’s Bank of China was its fifth in the past year and came as the economy faced challenges from weak growth and the tariff dispute with the US. The expected reduction would be introduced in two phases on 15 and 25 January. The ratios were 14.5% for large banks and 12.5% for smaller players before the cut was announced.