China looks like it will reduce the reserve requirement ratio (RRR), or the amount of cash that banks must hold in reserve, to shore up its slowing economy amid growing headwinds.
This is an attempt to stimulate the economy (reverse to Federal Reserve and other Western economies) by encouraging banks to lend harder to the property sector and in response to the COVID lock downs.
Question is of course is, will it work – or just slim the reserves of the banks some more….
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