The People’s Bank of China announced it would cut the reserve ratio by 0.5 percentage points for banks that lent significantly to smaller companies and farmers, Bloomberg reported, citing a statement on the central bank’s website on Monday. The reduction will take effect on June 16, and is set to affect two-thirds of city commercial banks, 80% of non-county level rural commercial banks and 90% of non-county level rural cooperative banks. Combinined with other moves, PBOC is projected to inject RMB545 billion of liquidity into the market by the end of June to support the slowing economy.
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