China announced on Wednesday that it will reduce the amount of reserves required by banks next month in order to increase lending, according to official media.
The decision comes as the world’s second-largest economy faces a number of challenges, including a prolonged property crisis, slowing domestic consumption, and weaker international demand.
“People’s Bank of China Governor Pan Gongsheng said at a press conference of the State Council Information Office on January 24 that the reserve requirement ratio (RRR) will be lowered by 0.5 percentage points on February 5,” according to CCTV, the state-run news agency.
According to the AFP article, the measure would offer “1 trillion yuan ($140 billion) of liquidity to the market”.
The governor of the central bank also stated on Wednesday that more policies to help the country’s
