Peoples Bank of China (PBoC) today cut its leading interest rate by 25bp and the reserve requirement ratio (RRR) for commercial banks by 50bp. This was the fifth interest rate cut since November last year. The one-year benchmark lending rate and the one-year benchmark deposit rate were both cut by 25bp to 4.6% and 1.75%, respectively.
The reserve requirement ratio for large commercial banks was cut by 50bp to 18.0%. Notably, the RRR cut will not be effective until 6 September, hence the RRR-cut will not immediately inject liquidity in the money market.
To Read the Entire Report Please Click on the pdf File Below