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Experts weigh in on central bank move to cut RRR

By Yu Xiaoming | chinadaily.com.cn | Updated: 2020-01-02 14:25
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Headquarters of the People's Bank of China (PBOC), the central bank, is pictured in Beijing, Sept 28, 2018. [Photo/VCG]

The People's Bank of China (PBOC), China's central bank, decided on Wednesday to cut the reserve requirement ratio (RRR) for financial institutions by 50 basis points from Jan 6 to spur the real economy.

The move will cut the cash that lenders must hold as reserves, releasing about 800 billion yuan ($114.6 billion) of long-term liquidity to bolster the economy and reduce social financing costs.

Let's take a look what experts say about it.

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