Govt unveils measures to bolster economic recovery

China announced a cut in the foreign exchange reserve requirement ratio for banks on Monday as part of the country's new round of measures to boost support for economic recovery, officials and industry experts said.

The policies will significantly bolster market confidence and shore up domestic demand, helping China's economic growth rebound in the months ahead to about 5 percent in the third and fourth quarters, the experts said.

The People's Bank of China, the nation's central bank, announced that it would reduce the foreign exchange reserve requirement ratio for banks from 8 percent to 6 percent on Sept 15. The onshore and offshore exchange rates of the renminbi against the dollar strengthened after the announcement.