By South China Morning Post | Created at 2024-09-24 01:38:05 | Updated at 2024-09-30 11:28:06
6 days ago
China announced a suite of new heavyweight policies to boost the economy on Tuesday, including cuts to the mortgage rate for existing housing and its reserve requirement ratio, while it also plans to roll-out new tools to support the stock market.
The reserve requirement ratio (RRR) – the amount of cash that commercial banks must hold as reserves – and the mortgage rates for existing housing would be cut by half a percentage point, according to People’s Bank of China governor Pan Gongsheng.
The seven-day reverse repo rate would also be lowered from 1.7 per cent to 1.5 per cent.
Pan said that China’s central bank would guide a smooth rate transmission to ensure stable net interest margins for commercial banks.
The cut in the RRR is expected to provide liquidity of about 1 trillion yuan (US$141 billion) into the market.
