Arab Today, arab today china cuts bank reserve ratio to boost economy
Last Updated : GMT 04:33:33
Arab Today, arab today
Arab Today, arab today

China cuts bank reserve ratio to boost economy

Arab Today, arab today

Arab Today, arab today China cuts bank reserve ratio to boost economy

The People's Bank of China
Beijing - AFP

China's central bank said Wednesday it would make an across-the-board cut in the percentage of funds banks must hold in reserve, the first such cut in nearly three years as the world's second-largest economy falters.
The People's Bank of China said in a statement the reserve requirement ratio would fall by 0.50 percentage points, effective from Thursday.
The last time the central bank implemented an across-the-board cut in reserve requirements was May 2012, according to previous statements.
The measure, intended to free up bank lending, followed the announcement last month that gross domestic product rose an annual 7.4 percent in 2014 -- a 24-year low.
The central bank said it would "promote the healthy and stable operation of the economy".
Before the move, the level for major banks stood at 20 percent, while that for small and medium-sized banks was 16.5 percent, the official Xinhua news agency reported.
There would be an additional 0.50 percentage point cut for some banks lending to areas favoured by government policy, including agriculture and hydropower projects, the statement said.  
The Agricultural Development Bank of China, a institution set up to support government policy, will enjoy an additional cut of four percentage points, it said.
In November the central bank slashed benchmark interest rates for the first time in over two years, and analysts had expected further monetary easing as the economy showed more signs of distress.
"Today’s announcement isn't a surprise," said Mark Williams, chief Asia economist for Capital Economics.
"It is consistent with the more accommodative stance being taken since the benchmark interest rate cut in November," he said in a research note, estimating the move would pump 600 billion yuan ($96 billion) into the banking system.
A survey at the weekend showed China's manufacturing activity contracting for the first time in more than two years, signalling further downward pressure on the economy.
The Purchasing Managers' Index (PMI) released by the government's National Bureau of Statistics came in at 49.8 last month. A figure above 50 signals expansion, while anything below indicates contraction.
"January PMI was weaker than expected and there are signs of capital outflows. If the central bank doesn't lower reserve requirements, corporate financing costs would become an issue," Liu Ligang, Hong Kong-based economist for ANZ Bank, told AFP.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china cuts bank reserve ratio to boost economy Arab Today, arab today china cuts bank reserve ratio to boost economy

 



Arab Today, arab today
Arab Today, arab today Nasima Gamei revives Algerian heritage in jewelries

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives Algerian heritage in jewelries
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Blind sheikh buried in Egypt

GMT 06:32 2017 Thursday ,23 February

Blind sheikh buried in Egypt
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Salma Rashid happy for 'A Whisper of Love'

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday