Clicky

  • Login
  • Register
  • Submit Your Content
  • Contact Us
Tuesday, September 24, 2024
World Tribune
No Result
View All Result
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food
Submit
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food
No Result
View All Result
World Tribune
No Result
View All Result

China will cut reserve requirement ratio by 50 basis points, PBOC chief says

September 24, 2024
in News
Reading Time: 3 mins read
A A
China will cut reserve requirement ratio by 50 basis points, PBOC chief says
0
SHARES
ShareShareShareShareShare

READ ALSO

Trump Media stock hits new low after DJT lockup lifts

UniCredit boosts its stake in Commerzbank, applies to own up to 29.9% of the German bank

Pan Gongsheng, governor of the People’s Bank of China, delivers a speech during the 2024 Lujiazui Forum on June 19, 2024 in Shanghai, China.

Vcg | Visual China Group | Getty Images

BEIJING — China will cut the amount of cash banks need to have on hand, known as the reserve requirement ratio, or RRR, by 50 basis points, People’s Bank of China Gov. Pan Gongsheng said during a press conference on Tuesday.

Pan, who was speaking to reporters alongside two other financial regulator heads, did not indicate exactly when the central bank would ease the policy but said it would be in the near term. Depending on conditions, there may be another cut of 0.25 to 0.5 basis points by the end of the year, Pan added.

He also said the PBOC would cut the 7-day repo rate by 0.2 percentage points.

China’s 10-year government bond yield hit a record low of 2% after Pan’s opening remarks.

Later in the press conference, he also signaled that a 0.2-0.25% cut in the loan prime rate is possible, without specifying when or if he was referring to the one-year or five-year LPR. Last Friday, the PBOC kept its main benchmark lending rates unchanged at the monthly fixing.

Pan added that the official policy announcements would be published on the central bank’s website, but did not specify when.

The relatively rare high-level press conference was scheduled after the U.S. Federal Reserve cut interest rates last week. That kicked off an easing cycle that gave China’s central bank further room to cut its rates and boost growth in the face of deflationary pressure.

Pan became PBOC governor in July 2023. During his first press conference as central bank governor in January, Pan said the PBOC would cut the reserve requirement ratio, or RRR. Such policy announcements are rarely made during such events, and are typically disseminated through online releases and state media.

He then told reporters in March, alongside China’s annual parliamentary meeting, there was room to cut the RRR further. Such a reduction is widely expected in coming months.

Unlike the Fed’s focus on a main interest rate, the PBOC uses a variety of rates to manage monetary policy. The PBOC on Friday did not change its loan prime rate, a benchmark that affects corporate and household loans, including mortgages.

China’s government system also means that policy is set at a far higher level than that of the financial regulators speaking Tuesday. Such top-level meetings in July called for efforts to reach full-year growth targets and to boost domestic demand.

China will cut reserve requirement ratio by 50 basis points, PBOC chief says

While the PBOC kept the loan prime rate unchanged in the days since the Fed’s cut, it has moved to lower a short-term rate, which determines the supply of money. The PBOC on Monday lowered the 14-day reverse repo rate by 10 basis points to 1.85%, but did not reduce the 7-day reverse repo rate, which was cut in July to 1.7%. Pan has indicated he would like the 7-day rate to become the main policy rate.

China’s economic growth has slowed, dragged down by the real estate slump and low consumer confidence. Economists have called for more stimulus, especially on the fiscal front.

This is a breaking story. Please check back later for updates.

Credit: Source link

ShareTweetSendSharePin
Previous Post

Elon Musk loses legal fight with ex-Twitter employee

Next Post

Brooklyn FC taking ‘baby steps’ in entry to New York’s soccer scene

Related Posts

Trump Media stock hits new low after DJT lockup lifts
News

Trump Media stock hits new low after DJT lockup lifts

September 23, 2024
UniCredit boosts its stake in Commerzbank, applies to own up to 29.9% of the German bank
News

UniCredit boosts its stake in Commerzbank, applies to own up to 29.9% of the German bank

September 23, 2024
Luxury stocks slip as fears grow of a prolonged downturn
News

Luxury stocks slip as fears grow of a prolonged downturn

September 23, 2024
Britain’s finance minister calls for spending discipline but no return to austerity
News

Britain’s finance minister calls for spending discipline but no return to austerity

September 23, 2024
A stunning sterling rally is about to collide with Britain’s political realities
News

A stunning sterling rally is about to collide with Britain’s political realities

September 23, 2024
China stimulus calls are growing louder, at home and abroad
News

China stimulus calls are growing louder, at home and abroad

September 23, 2024
Next Post
Brooklyn FC taking ‘baby steps’ in entry to New York’s soccer scene

Brooklyn FC taking 'baby steps' in entry to New York's soccer scene

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

What's New Here!

MLB picks, best bets Friday

MLB picks, best bets Friday

August 30, 2024
State of digital health investment, part 7: General Catalyst

State of digital health investment, part 7: General Catalyst

August 27, 2024
I don’t get why Apple’s multitrack Voice Memos require an iPhone 16 Pro

I don’t get why Apple’s multitrack Voice Memos require an iPhone 16 Pro

September 12, 2024
Trump’s Secret Service stopped assassination attempt

Trump’s Secret Service stopped assassination attempt

September 16, 2024
Elon Musk’s xAI could help Tesla with FSD and Optimus

Elon Musk’s xAI could help Tesla with FSD and Optimus

September 8, 2024
Nationwide strikes erupt in Israel amid cease-fire deal protests

Nationwide strikes erupt in Israel amid cease-fire deal protests

September 2, 2024
Ripple Effects of the Chevron Doctrine Overturn on the Food and Beverage Industry

Ripple Effects of the Chevron Doctrine Overturn on the Food and Beverage Industry

September 11, 2024

About

World Tribune is an online news portal that shares the latest news on world, business, health, tech, sports, and related topics.

Follow us

Recent Posts

  • Brooklyn FC taking ‘baby steps’ in entry to New York’s soccer scene
  • China will cut reserve requirement ratio by 50 basis points, PBOC chief says
  • Elon Musk loses legal fight with ex-Twitter employee
  • National Environmental Health Association Awarded FDA Cooperative Agreement to Advance Retail Food Safety

Newslatter

Loading
  • Submit Your Content
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2024 World Tribune - All Rights Reserved!

No Result
View All Result
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food

© 2024 World Tribune - All Rights Reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In