- PBOC cuts RRR by 25 bps, effective from Dec 5
Notícias do Mercado
25 novembro 2022
PBOC cuts RRR by 25 bps, effective from Dec 5
The People’s Bank of China (PBOC) cuts banks’ Reserve Requirement Ratio (RRR) by 25 basis points (bps)
The Chinese central bank said the bank’s Reserve Requirement Ratio cut effective as of December 5.
Additional takeaways
Weighted average RRR for financial institutions at 7.8% after the new cut.
New RRR cut will release around 500 bln yuan in long-term liquidity.
Will step up implementation of prudent monetary policy.
Will keep liquidity reasonably ample.
Will not resort to flood-like stimulus.
Market reaction
AUD/USD is unable to capitalize on the PBOC RRR cut, as it feels the pull of gravity on the back of a sudden strength in the US Dollar. The Aussie is losing 0.33% on the day to trade at 0.6732, as of writing.
O foco de mercado
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimerAbrir Conta Demo e Página Pessoal