The People's Bank of China has decided to reduce the deposit reserve ratio of financial institutions by 0.25 percentage points on March 27, 2023 (excluding financial institutions that have implemented a 5% deposit reserve ratio) in order to promote the quality and effective improvement of the economy and the reasonable growth of the quantity, play a good combination of macro policies, improve the level of service to the real economy, and maintain a reasonable and sufficient liquidity of the banking system. After this reduction, the weighted average reserve requirement ratio for financial institutions is about 7.6%.
The People's Bank of China will resolutely implement the spirit of the 20th National Congress of the Communist Party of China, the Central Economic Work Conference and the National Two Sessions. In accordance with the decisions and arrangements of the Central Committee of the Communist Party of China and the State Council, it will accurately and forcefully implement sound monetary policy, give better play to the dual functions of the total amount and structure of monetary policy tools, maintain an appropriate amount of money and credit, maintain a stable pace, maintain reasonable and sufficient liquidity, maintain the basic matching of the growth rate of money supply and social financing scale, better support key areas and weak links, avoid flooding, give consideration to internal and external balance, and strive to promote high-quality economic development.
