{"id":25675,"date":"2011-11-30T12:38:00","date_gmt":"2011-11-30T17:38:00","guid":{"rendered":"http:\/\/countingpips.com\/fx\/2011\/11\/30\/peoples-bank-of-china-drops-rrr-50bps-to-21\/"},"modified":"2011-11-30T12:38:00","modified_gmt":"2011-11-30T17:38:00","slug":"peoples-bank-of-china-drops-rrr-50bps-to-21","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/11\/30\/peoples-bank-of-china-drops-rrr-50bps-to-21\/","title":{"rendered":"People’s Bank of China Drops RRR 50bps to 21%"},"content":{"rendered":"

The People’s Bank of China<\/a> announced a 50 basis point reduction in the required reserve ratios for deposit taking financial institutions, effective 5th December 2011.  The new required reserve ratios will average 21.00% for large banks, and 19.00% for small banks.  The move potentially marks a shift in policy focus to growth by the Chinese authorities, and follows the news last week that the required reserve ratio would be reduced for selected rural cooperative banks<\/a> by 50 basis points to 16.00%, and also coincides with coordinated policy action by some of the key central banks to support the Eurozone.<\/span><\/p>\n

<\/a><\/div>\n
The People’s Bank of China last raised the reserve requirements<\/a> by 50 basis points in June this year to an average 21.50% for large banks, and 19.50% for small banks.  The PBC also adjusted<\/a> the reserve requirement rules in August, effectively resulting in tightening of about 100bps.  Meanwhile the People’s Bank of China last raised the benchmark interest rate<\/a> 25bps to 6.56% in early July this year.  The Bank for International Settlements recently published a paper on ‘China’s Evolving Reserve Requirements’ which provides an interesting and detailed analysis of the People’s Bank of China’s use of the required reserve ratio<\/a> as a tool for monetary policy.<\/p>\n

www.CentralBankNews.info<\/a><\/div>\n

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The People’s Bank of China announced a 50 basis point reduction in the required reserve ratios for deposit taking financial institutions, effective 5th December 2011.  The new required reserve ratios will average 21.00% for large banks, and 19.00% for small banks.  The move potentially marks a shift in policy focus to growth by the Chinese authorities, and … <\/p>\n

Continue reading “People’s Bank of China Drops RRR 50bps to 21%”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-25675","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/25675","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=25675"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/25675\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=25675"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=25675"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=25675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}