The People’s Bank of China cut domestic banks’ reserve requirement ratio by 1% on Sunday, allowing the banks to lend more of their funds to businesses at a scale unseen since the depths of the global financial crisis in November of 2008, The Financial Times reported. Beijing has already cut benchmark interest rates twice and lowered the reserve requirement ratio once since November of last year. “With the fall-off in capital inflows the central bank needs to cut reserve requirements fairly substantially just to keep monetary policy neutral,” said Andrew Batson of research oufit Gavekal Dragonomics.
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