2023-09-14 13:40:51
China’s central bank, the People’s Bank of China, announced on the 14th that it will implement additional monetary easing by reducing the deposit reserve ratio, the ratio of funds compulsorily deposited by financial institutions, by 0.25% from the 15th.
This is expected to lead to an increase in lending by reducing the amount of funds that financial institutions deposit with the People’s Bank of China and increasing their available capacity for lending.
This is the first time that the deposit reserve ratio has been lowered since March.
In China, the pace of recovery in the Chinese economy is slowing due to the prolonged slump in the real estate market, and the People’s Bank of China has decided to implement additional monetary easing to support corporate financing and improve the economy. The idea is to support the.
However, it has been pointed out that it is unclear whether stagnant demand will recover through monetary easing, and there is a possibility that the depreciation of the renminbi, which is progressing in the foreign exchange market, will further accelerate, and the People’s Bank of China is facing difficult policy measures. It looks like they will have to manage it.
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