China to slash reserve ratio by 50 bps in Feb

With the biggest cut since December 2021, China seeks economic recovery

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China will cut the reserve requirement ratio (RRR) for banks in early February to unleash more money and help the economy, according to People's Bank of China Governor Pan Gongsheng.

The 0.5 percentage-point cut to the ratio, or the amount of cash that banks have to keep in reserve, on February 5 will provide 1 trillion yuan ($139 billion) in long-term liquidity to the market, Pan said during a briefing with the press Wednesday.

It's rare for the central bank governor to pre-empt a RRR cut by revealing it in a press conference.