China to cut reserve requirement ratio for rural banks

Written by Reuters | Beijing | Updated: Apr 22 2014, 21:03pm hrs
China's central bank will cut the reserve requirement ratio for rural banks at the county level by between 0.5 and 2 percentage points, it announced on Tuesday.

The People's Bank of China will cut the RRR, or amount of deposits banks must hold as reserves, by 2 percentage points for rural commercial banks and by 0.5 percentage point for rural credit cooperatives.

The cut is effective from Friday, the central bank said in a statement on its website

China's premier, Li Keqiang, had first announced the cut last week, but had not given details.