(NPC) Li says reserve requirements, interest rates can be used to support growth

Friday, March 15, 2019

China can use reserve requirements and interest rates to support economic growth, Premier Li Keqiang said today in Beijing.

The central bank has cut banks’ reserve requirement ratios (RRR) five times in the past year, with a two-stage RRR cut in January releasing a total of 1.5 trillion yuan (US$223.23 billion) into the financial system, Reuters reports.

Further cuts in the RRR had been widely expected this year, after fresh data pointed to persistently soft demand in the Asian economic giant, raising fears of a sharper slowdown.