(Finance) – The Chinese central bank has reduced the amount of liquidity that banks have to keep in reserve. There Pboc so he decided to reduce the reserve ratio on deposits of financial institutions by 0.25% starting next April 25th.
The move – reads a note from the central bank – points to support the real economyin particular “small and micro enterprises”, rural areas and rural commercial banks with a deposit reserve ratio of more than 5%.
This morning, the PBOC surprisingly left unchanged the one-year financing costs of medium-term loans (MLF) at 2.85%, despite the expectations of the markets that were aiming for a cut to support the economy after the slowdown caused by the exacerbation of the Covid-19 outbreaks.