CCTV News (news broadcast): On September 27th, the People’s Bank of China decided to reduce the deposit reserve ratio of financial institutions by 0.5 percentage points from September 27th to provide long-term liquidity to the financial market of about 1 trillion yuan. After this reduction, the weighted average deposit reserve ratio of financial institutions is about 6.6%.
At the same time, the People’s Bank of China also announced that the policy interest rate will be lowered, and the 7-day reverse repurchase operating rate in the open market will be lowered by 0.2 percentage points, from the previous 1.70% to 1.50%. The policy interest rate reduction is the largest in the past four years, which will reduce the comprehensive financing cost of the real economy through transmission and support stable economic growth.
The People’s Bank of China said that the simultaneous implementation of the RRR cut and interest rate cut today is an important measure to implement the spirit of the the Political Bureau of the Communist Party of China (CPC) Central Committee Conference and intensify the countercyclical adjustment of monetary policy, further consolidate the consensus on high-quality development, provide sufficient impetus for the healthy and upward development of the market, and effectively promote the sustained economic recovery.