People's Bank of China Cuts RRR 50 basis points

The People's Bank of China (PBOC) announced a 50 basis point reduction in the required reserve ratios (RRR) for deposit taking financial institutions, effective 24th February 2012. The new required reserve ratios will average 20.50% for large banks, and 18.50% for small banks. The move is expected to add as much as 400 billion yuan of liquidity to the financial system. The move marks a shift...