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20 Apr 2015
PBoC Cuts Reserve Requirement By 1 Percentage Point
FXStreet (Mumbai) - The People's Bank of China (PBoC), the nation's central bank, has reduced the minimum reserve requirements for commercial banks in China by 100 basis points, or 1%, beginning Monday, April 20.
The minimum reserve requirements for large credit institutions will be reduced to 18.5% from April 20.
The PBoC last cut the reserve requirements ratio for commercial banks by 50 basis points this February, the first banking industry-wide reduction since May 2012.
PBoC Governor Xiaochuan signaled the move in a brief interview for Bloomberg on the sidelines of the spring World Bank and the International Monetary Fund (IMF) meetings.
Zhou said in a brief interview on Saturday in Washington, "We have room in the reserve ratio and our interest rates are not zero yet,"
"There is definitely room. But we need to adjust carefully. It doesn’t mean we will have to utilize it or fully utilize the room."
The minimum reserve requirements for large credit institutions will be reduced to 18.5% from April 20.
The PBoC last cut the reserve requirements ratio for commercial banks by 50 basis points this February, the first banking industry-wide reduction since May 2012.
PBoC Governor Xiaochuan signaled the move in a brief interview for Bloomberg on the sidelines of the spring World Bank and the International Monetary Fund (IMF) meetings.
Zhou said in a brief interview on Saturday in Washington, "We have room in the reserve ratio and our interest rates are not zero yet,"
"There is definitely room. But we need to adjust carefully. It doesn’t mean we will have to utilize it or fully utilize the room."