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: 乱码一乱码二乱码三新区| 国产a级一级久久毛片| 一二三四在线观看免费高清视频| 樱花草在线社区www韩国| 免费a级毛片无码免费视频| 韩国日本好看电影免费看| 国产黄色片在线观看| 中文字幕乱码第一页| 最近中文字幕2018| 亚洲精品动漫在线| 美女羞羞动画网站视频| 国产日韩一区二区三区在线观看 | 精品国产亚洲一区二区三区在线观看 | 日本wwwxxxxx| 在免费jizzjizz在线播| 一级片中文字幕| 日本理论片午夜论片| 亚洲午夜福利在线视频| 男女一对一免费视频| 国产AV一区二区精品凹凸| 911亚洲精品| 国产精品理论电影| mm1313亚洲国产精品无码试看| 日本a级作爱片金瓶双艳| 亚洲av无码片在线观看| 欧美黑人巨大videos在线| 免费观看黄网站| 色与欲影视天天看综合网| 国产无遮挡又黄又爽在线观看| 91久久偷偷做嫩草影院免| 天天操天天干天天操| 东北疯狂xxxxbbbb中国| 日本卡一卡二新区| 亚洲AV无码乱码国产精品| 欧美激情在线一区二区三区| 体育男生吃武警大雕video| 精品视频久久久久| 国产久热精品无码激情| 国产浮力影院第一页| 国产精品老熟女露脸视频 | 欧美日本另类xxx乱大交|