Today, the People's Bank of China announced a 0.5 percentage point reduction in the reserve requirement ratio and a 20 basis point reduction in the 7-day reverse repurchase operation rate.

The central bank: starting from September 27, 2024, it will reduce the reserve requirement ratio of financial institutions by 0.5 percentage points

The People's Bank of China adheres to a supportive monetary policy stance, increases the intensity of monetary policy regulation, enhances the precision of monetary policy regulation, and creates a good monetary and financial environment for the stable growth and high-quality development of the Chinese economy.

The People's Bank of China has decided to reduce the reserve requirement ratio for financial institutions by 0.5 percentage points starting from September 27, 2024 (excluding financial institutions already subject to a 5% reserve requirement ratio). After this reduction, the weighted average reserve requirement ratio for financial institutions is approximately 6.6%.

The central bank: starting from September 27, the 7-day reverse repurchase operation rate of the open market will be adjusted from the previous 1.70% to 1.50%

The People's Bank of China issued an announcement to intensify the countercyclical adjustment of monetary policy, support stable economic growth, and starting from September 27, the 7-day reverse repurchase operation rate in the open market has been adjusted from the previous 1.70% to 1.50%. The operation rates for 14-day reverse repurchases and temporary reverse and repurchase operations in the open market will continue to be determined by adding or subtracting points from the 7-day reverse repurchase operation rate, with the magnitude of the adjustments remaining unchanged.

Editor/Lambor