China's central bank gives lenders cash boost to spur growth

China’s central bank cut the amount of cash banks must hold in reserve, stepping up its monetary policy action to cushion the economy from its worst Covid outbreak since early 2020.

The People’s Bank of China lowered the reserve requirement ratio for most banks by 25 basis points and for smaller banks by 50 basis points, according to a statement published Friday. 

 

The move was signalled by the State Council, China’s cabinet, at a meeting on Wednesday, and followed repeated warnings from top officials about risks to growth and the need for more monetary and fiscal stimulus. 

Stringent measures