BEIJING -- Chinese financial authorities have opened the monetary spigot sooner than expected in a preemptive attempt to underpin an economy making a tenuous recovery from zero-COVID policies.
The People's Bank of China said Friday that it would cut the reserve requirement ratio (RRR) for financial institutions by 0.25 percentage point, the first reduction since December. Banks operating in China must park a certain percentage of funds with the PBOC, and trimming the RRR frees up liquidity for lending.
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