China Cuts RRR for Selected Rural Banks by 50bps to 16%

The People's Bank of China reduced the required reserve ratio for selected (20) rural cooperative banks by 50 basis points to 16.00% from 16.50% according to FT/Bloomberg. The move heralds a possible turn in policy settings in China, and follows previous comments from Chinese Premier, Wen Jiabao, that the Chinese government would "preemptively fine-tune policy at a suitable time and by an...