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PBOC governor: "some room" exists for cutting reserve requirement ratio

BEIJING
2019-03-10 14:49

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Governor of the People's Bank of China Yi Gang attends a press conference on the financial reform and development for the second session of the 13th National People's Congress (NPC) in Beijing, capital of China, March 10, 2019. (Xinhua/Li Ran)

BEIJING, March 10 (Xinhua) -- Chinese central bank governor said Sunday that there is still some room for lowering the country's reserve requirement ratio.

The overall reserve requirement ratio now stands at around 12 percent, a similar level as some developed countries, Yi Gang, governor of the People's Bank of China (PBOC), told a press conference on the sidelines of the annual legislative session.

Since the beginning of 2018, China has lowered the reserve requirement ratio by a total of 3.5 percentage points in five cuts, he said.

China will reform and refine monetary and credit supply mechanisms, and employ a combination of quantitative and pricing approaches, like required reserve ratios and interest rates, to guide financial institutions in increasing credit supply and bringing down the cost of borrowing, according to a government work report delivered on Tuesday. 

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