Source:
https://scmp.com/economy/china-economy/article/2180758/china-prepares-testing-2019-freeing-us210-billion-latest-moveChina Economy
China prepares for testing 2019 by freeing up US$210 billion in latest move to boost ailing economy
- People’s Bank of China to cut required reserve ratio by one percentage point in January
- Move came hours after Chinese Premier Li Keqian told the central bank to do more to help the growth of the world’s second largest economy
China made its first major monetary policy easing announcement of 2019 on Friday as Beijing prepared to roll up its up sleeves to battle a year that is expected to be filled with economic hardship as well as numerous other challenges at home and abroad.
The People’s Bank of China (PBOC), China’s central bank, will cut the amount of money banks are required to hold in reserve with it by one percentage point, a move that could pump 1.5 trillion yuan (US$210 billion) of additional liquidity into the banking system to help arrest a deepening economic slowdown.