This undated photo shows the headquarter of the People's Bank of China in Beijing. (PHOTO / XINHUA)
BEIJING – China's central bank Tuesday announced a cut to the reserve requirement ratio for most commercial and overseas banks.
The moves aims to create a sound environment for high-quality growth and supply-side reform
The People's Bank of China (PBOC) will cut the reserve requirement ratio (RRR) for most of the banks by 1 percentage point from April 25 to boost small businesses, and to improve financial stability and liquidity.
"The moves aims to create a sound environment for high-quality growth and supply-side reform," according to the PBOC website.
The money released will be used to pay back medium-term lending facilities.
The RRR cut comes after GDP expanded 6.8 percent year on year in the first quarter, unchanged from the previous quarter.
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