This is a small cut only, but had been flagged:
A signal of a PBOC cut. This time from China’s leaders. The PBOC will pay attention.
So far there has been no rate cut, just this RRR cut.
The 25-basis-point cut to banks’ reserve requirement ratio will release around 530 bn yuan in long-term liquidity.
The Bank said the cut would assist banks to support industries and firms affected by surging COVID-19 cases.
A 25bp cut is smaller than the usual 50 or 100 bps cut.
