People's Bank of China Decided to Lower RRR Of Financial Institutions

Published: Mar 28, 2023 11:34
Source: SMM
In order to promote the effective improvement of the economy and the reasonable growth of the quantity, make a good combination of macro policies

SHANGHAI, Mar 28 (SMM) - In order to promote the effective improvement of the economy and the reasonable growth of the quantity, make a good combination of macro policies, improve the level of service to the real economy, and maintain a reasonable and sufficient liquidity in the banking system. The Central Bank announced that the deposit reserve ratio of financial institutions will be lowered by 0.25 percentage point on March 27 (excluding financial institutions that have implemented a deposit reserve ratio of 5%). After this reduction, the weighted average RRR of financial institutions will be 7.6%. The People's Bank of China will resolutely implement the spirit of the 20th National Congress of the Communist Party of China, the Central Economic Work Conference and the National Two Sessions, implement the prudent monetary policy accurately and forcefully in accordance with the decisions and deployments of the Party Central Committee and the State Council, and make better use of both the total amount and the structure of monetary policy tools to maintain an appropriate amount of money and credit and a stable pace, maintain a reasonable and sufficient liquidity, keep the growth rate of the money supply and social financing scale basically matching the nominal economic growth rate, better support key areas and weak links, and avoid flooding Flood irrigation, taking into account internal and external balance, and strive to promote high-quality economic development.


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