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China Announces RRR Cut Of At Least 50 bps; First Since February 2016

China Announces RRR Cut Of At Least 50 bps; First Since February 2016

In a sign that China's ongoing attempts to delever (and decelerate) the economy may have gone a bit too far, on Saturday morning China’s central bank announced a targeted reserve requirement ratio (RRR) cut, its first since February 2016 and which will go into effect in 2018, in an attempt to boost lending to struggling smaller firms and energize China's lacklustre private sector, Xinhua reported.