Beijing — China’s central bank on Sunday announced a steep cut in the level of cash that banks must hold as reserves, stepping up moves to lower financing costs and spur growth amid concerns over the economic drag from an escalating trade dispute with the US. The reserve requirement cut, the fourth by the People’s Bank of China in 2018, comes as Beijing has pledged to expedite plans to invest billions of dollars in infrastructure projects as the economy shows signs of cooling further, with investment growth slowing to a record low. Reserve requirement ratios (RRRs) — now 15.5% for large commercial lenders and 13.5% for smaller banks — would be cut by 100 basis points from October 15, the bank said, matching a similar-sized move in April. Economists predicted further cuts ahead.
Beijing has stepped up liquidity support across the financial system in 2018 as policymakers have focused on calming fears of capital outflows and sought to soothe battered markets even as anxiety grows...
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