China's central bank cuts deposit reserve requirement ratio

30 November 2011 14:43  [Source: ICIS news]

GUANGZHOU (ICIS)--The People's Bank of China, its central bank, announced late on Wednesday that it will cut the deposit reserve requirement ratio to 21% from 21.5% from 5 December.

After the deduction, big financial institutions will need to submit 21% of their deposits to the central bank.

The last cut was made almost three years ago in December 2008.

The ratio has beenb raised 12 times since January 2010, of which six were made in the first half of this year to tame inflation.

The latest move is widely believed to be a slight ease on the country's tight monetary policies that have led to difficulties for many enterprises, especially small and mid-sized ones which have struggled to get bank loans to support operations.

By: Staff Reporter
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