RRR cut to boost real economy, spur growth

China's central bank announced on Friday it will cut the reserve requirement ratio for banks, a key move to boost financing of the real economy and buffer the economic impact of a rise in COVID-19 cases, experts said.

People's Bank of China, the country's central bank, announced on Friday that it would cut the RRR for financial institutions by 0.25 percentage point on Dec 5, which will release about 500 billion yuan ($69.75 billion) in long-term funds.

The RRR refers to the proportion of money that lenders must hold as reserves. China last cut the RRR in April by 0.25 percentage point.