PBoC slashes RRR and IOER rates

Rebecca Feng

April 06, 2020 11:30 am

PBoC_China_money_PA_230x150_06Apr20 — --FILE--In this photo, a piece of 100 Yuan is binded with a small calculator in front of People's Bank of China, Beijing, China, 25 August 2015. China allowed its yuan to fall below the politically sensitive level of seven to the U.S. dollar for the first time in 11 years on Monday. (Photo by Zhang Rongqing - Imaginechina/Sipa USA) | Imaginechina/SIPA USA/PA Images

The People’s Bank of China announced the much-anticipated cut to the reserve requirement ratio (RRR) by 100bp for small and medium-sized banks last Friday. But in a surprise move, the central bank also dug out an old tool to appease the market after hopes were shattered on a lower benchmark deposit rate.

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Rebecca Feng