People's Bank of China Implements Reserve Requirement Ratio Cut, Injects 1 Trillion Yuan
The People's Bank of China announced a 50 basis point cut to banks' reserve requirement ratio, releasing 1 trillion yuan in long-term capital starting February 5th. Regulators also said they will soon issue measures to encourage bank lending to qualified property developers. Beijing has been reluctant to embark on massive stimulus due to concerns over widening yield gaps with the US. Analysts say the stimulus measures may stabilize markets in the near term, but a fundamental economic recovery will require improved property and consumption trends.
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00:00 It's Benzinga and here's what's on the block. People's Bank of China announced a 50-basis
00:04 point cut to banks' reserve requirement ratios, releasing 1 trillion yuan in long-term capital
00:09 starting on February 5. Regulators also said they will soon issue measures to encourage bank
00:13 lending to qualified property developers. Beijing has been reluctant to embark on massive stimulus
00:18 due to concerns over widening yield gaps with the US. Analysts say the stimulus measures may
00:23 stabilize markets in the near term, but a fundamental economic recovery will require
00:27 property and consumption trends to improve. Most analysts believe current efforts are insufficient
00:31 and greater monetary and fiscal easing will be needed to address China's macroeconomic challenges.
00:36 For all things money, visit Benzinga.com.