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China's central bank to cut RRR by 0.25 percentage points

The People's Bank of China announced on November 25 that it will cut reserve requirement ratio (RRR) for financial institutions by 0.25 percentage points (except for some incorporated financial institutions that have already implemented an RRR of 5%), which will bring the weighted average RRR level to 7.8%.

The RRR cut will take effect on December 5 and is expected to inject 500 billion yuan (69.45 billion US dollars) of liquidity into the economy.