China’s central bank made a surprisingly aggressive cut in the bank reserve requirement Sunday, allowing banks to lend more money, in order to give the flagging economy a boost. The People’s Bank of China slashed the reserve requirement ratio–the portion of deposits that banks need to keep on reserve with the central bank–by a full percentage point. It was the biggest such move since late 2008, according to analysts. However, the central bank wasn’t finished there, offering an array of targeted reserve requirement cuts aimed at helping small businesses and farmers.
The central bank has cut the reserve requirement on deposits twice since February and trimmed interest rates twice since November. The latest move, which takes effect Monday, followed the government’s announcement last week that first-quarter economic growth was 7% from a year earlier, the worst performance in six years. It also followed Premier Li Keqiang’s visit last week to the headquarters of some big state banks where he called on the nation’s bankers to try to lower the borrowing costs for companies struggling to adjust to a weaker economy.
So is their cracks in other countries as well. In Canada I don't believe were starting to pick up or is the USA.
The central bank has cut the reserve requirement on deposits twice since February and trimmed interest rates twice since November. The latest move, which takes effect Monday, followed the government’s announcement last week that first-quarter economic growth was 7% from a year earlier, the worst performance in six years. It also followed Premier Li Keqiang’s visit last week to the headquarters of some big state banks where he called on the nation’s bankers to try to lower the borrowing costs for companies struggling to adjust to a weaker economy.
So is their cracks in other countries as well. In Canada I don't believe were starting to pick up or is the USA.
Comment