Market news
17.03.2023, 09:07

PBOC cuts banks’s Reserve Requirement Ratio by 25 bps

The People’s Bank of China (PBOC) announced on Friday that it cut banks’ Reserve Requirement Ratio (RRR) by 25 basis points (bps), effective from March 27.

Additional takeaways

Weighted average RRR for financial institutions at around 7.6% after the new cut.

RRR cut will exclude financial institutions that have implemented 5% RRR.

Will not resort to flood-like stimulus.

Will keep liquidity reasonably ample.

Will better supply key areas, weak links.

Will make prudent monetary policy precise and forceful.

Will keep money supply, total social financing basically in line with nominal economic growth.

Will keep total credit appropriate.

Market reaction

AUD/USD is finding support just above the 0.6700 level on the PBOC rate cut announcement. The pair stalled its retreat from 0.6725, now adding 0.80% on the day.

© 2000-2023. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at

Live Chat E-mail
Choose your language / location