Economic Watch: China to cut RRR by 50 basis points

    Source: Xinhua| 2020-01-01 20:49:14|Editor: huaxia
    Video PlayerClose

    Aerial photo taken on Sept. 26, 2019 shows a night view at Lujiazui area in Pudong District of east China's Shanghai. (Xinhua/Ren Long)

    An unnamed official with the PBOC said the reduction will offset the impacts of strong cash demand ahead of the Spring Festival to keep overall liquidity in the banking system basically stable, denying "flood-like" stimulus.

    BEIJING, Jan. 1 (Xinhua) -- The People's Bank of China (PBOC), China's central bank, on Wednesday decided to cut the reserve requirement ratio (RRR) for financial institutions by 50 basis points from Jan. 6 to spur the real economy.

    The move will cut the cash that lenders must hold as reserves, releasing about 800 billion yuan (114.6 billion U.S. dollars) of long-term liquidity to bolster the economy and reduce social financing costs.

    An unnamed official with the PBOC said the reduction will offset the impacts of strong cash demand ahead of the Spring Festival to keep overall liquidity in the banking system basically stable, denying "flood-like" stimulus.

    "The stance of prudent monetary policy has not changed," the official stressed.

    The central bank urged financial institutions to effectively use the additional funds to increase support for small, micro and private businesses.

    More than 120 billion yuan in long-term funds is expected to be unlocked for small and medium-sized lenders, which will build up their capacities to support the targeted enterprises, said the central bank.

    Meanwhile, the move will slash banks' capital costs by 15 billion yuan per year, which would help reduce the real cost of social financing.

    The New Year move came as the Chinese economy ended 2019 on stable footing despite domestic headwinds and external uncertainties, but downward pressures still loom large.

    The year-end tone-setting Central Economic Work Conference last month noted that the country faces rising downward economic pressure amid intertwined structural, institutional and cyclical problems, pledging stronger policy moves to keep the economy on a stable track.

    In 2020, monetary policy should be pursued with moderate flexibility to maintain market liquidity at a reasonably ample level, according to the conference.

    Wen Bin, chief analyst at China Minsheng Bank, said the move was in line with market expectations as the maturity of 600 billion yuan of reverse repos in January, coupled with tax payments and higher cash demand during the Spring Festival, will put strains on liquidity.

    Wen expected the reduction to lead to lower pricing of the new loan prime rate (LPR) to be announced later this month, with the one-year LPR at 4.1 percent and the above-five-year LPR at 4.75 percent.

    Noting the move will shore up market confidence, Wen said there is still room for further RRR cuts.

    China's economy expanded 6.2 percent in the first three quarters of 2019, and annual growth is set to meet the government's target of 6 to 6.5 percent. The GDP data for 2019 is due to be released on Jan. 17.

    KEY WORDS:
    EXPLORE XINHUANET
    010020070750000000000000011102121386718321
    主站蜘蛛池模板: 国产精品久久久久影院嫩草| 日本一区二区高清| 动漫美女被羞羞动漫小舞| 欧美成人18性| 女人被两根一起进3p在线观看| 久青草中文字幕精品视频| 特级毛片在线观看| 国产亚洲3p无码一区二区| 2019日韩中文字幕MV| 幻女free性俄罗斯第一次摘花| 亚洲av无码一区二区乱子伦as | 宝宝才三根手指头就湿成这样 | 特级深夜a级毛片免费观看| 国产一级做a爰片在线| 四虎在线视频免费观看视频| 在线毛片免费观看| 一级毛片一级毛片一级毛片aaav| 日韩欧美在线观看视频| 亚洲日本天堂在线| 男人把j桶进女的屁股的动态| 国产ts在线播放| 黄瓜视频在线观看网址| 国产精品成人va在线观看| assbbwbbwbbwbbwbw精品| 成人试看120秒体验区| 久久国产精久久精产国| 欧美人妻aⅴ中文字幕| 亚洲精品无码永久在线观看| 精品国产AV色欲果冻传媒| 国产不卡一卡2卡三卡4卡5卡在线| 日本免费人成在线网站| 国产超碰人人模人人爽人人喊| www.色综合| 成人理伦电影在线观看| 久久久精品国产免大香伊| 最近中文字幕完整版免费| 亚洲成a人片在线不卡| 清纯校花被色老头糟蹋| 内射人妻无套中出无码| 色哟哟免费在线观看| 国产免费啪嗒啪嗒视频看看|