Liquidity ease to fuel real economy

Central bank RRR cut helps fend off potential risk from trade, analysts say

The People's Bank of China, the country's central bank, unexpectedly announced on Sunday that it would cut the reserve requirement ratio for commercial banks by 1 percentage point, effective from Oct 15, in order to maintain domestic liquidity at a "reasonably ample level". The ratio is the minimum amount of cash that banks must have at all times.

Analysts believe the move will help support the country's real economy and fend off potential risks brought about by global trade uncertainties and business downturn pressure.