Central Bank cuts 0.5 percentage point
The first reduction in 2020 will release more than 800 billion long-term funds
On January 1, 2020, the central bank released news that in order to support the development of the real economy and reduce the actual cost of social financing, the People's Bank of China decided to reduce the deposit reserve ratio of financial institutions by 0.5 percentage points on January 6, 2020. The central bank stated that the RRR cut is a comprehensive RRR cut, which reflects counter-cyclical adjustments and released about 800 billion yuan of long-term funds, effectively increasing the stable funding sources for financial institutions to support the real economy.
Ministry of Finance of China Economic Net