China to launch more RRR cuts this year - Global Times
- China to announce more RRR cuts this year to counter the ongoing economic slowdown.
- China announced a 50 basis point RRR cut on Friday. The move will take effect from Sept. 16.
China, the world's second-largest economy, will likely announce more cuts in the reserve requirement ratio (RRR) this year, as the economy is facing dual pressure from domestic adjustments and trade war with the US, according to China's Global Times, an English-language Chinese newspaper under the People's Daily.
The latest RRR cut is likely to benefit the real economy, as the government has 'tightened the gate' for the real estate sector with policies like purchase restrictions, Cong Yi, a professor at the Tianjin University of Finance and Economics told The Global Times on Sunday.
On Friday, the People's Bank of China announced a broad-based 50 basis points (bps) cut in the RRR, effective Sept. 16.
The central bank also announced extra 100 bps RRR cut for city commercial banks operating solely within their respective provinces, of which 50 bps will take effect on 15 October and 50 bps on 15 November.